ECO304K Definitions for First Midterm

ECO304K Definitions for First Midterm - Definitions for...

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Definitions for First Midterm Economics 304K:Principles of Microeconomics Prof. Meg Ledyard Absolute advantage : the ability to produce more of a good in a given amount of time. Comparative advantage : The ability to produce a good with a lower opportunity cost Opportunity cost : How much of one good you have to give up to produce a unit of the other good. Quantity demanded:  the amount of a good that a buyer is willing and able to purchase at a given price. Demand : A graph of the relationship between price and quantity demanded. Quantity supplied:  the amount of a good that sellers are willing and able to sell at a given price. Supply:  A graph of the relationship between price an quantity supplied. Inferior good : a good for which, all else equal, a fall in income leads to an increase in demand Normal good
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This note was uploaded on 04/05/2008 for the course ECON 304K taught by Professor Ledyard during the Fall '08 term at University of Texas at Austin.

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ECO304K Definitions for First Midterm - Definitions for...

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