Class_4_worksheet

Class_4_worksheet - optimal quantities. Describe the...

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Economics 101 P. Conway, Fall 2011 In-class worksheet, Class 4 1. The demand curve is a schedule or graph showing the quantity of a good or service that buyers wish to buy at each price . What shape should we expect for a demand curve for Carolina T-shirts? Why? Downward sloping, because as the price falls, more individuals wish to purchase t-shirts and some will buy more than one. 2. The supply curve is a schedule or graph showing the quantity of a good or service that sellers wish to sell at each price . What is the relation between the supply curve and marginal cost? What principle gives us the slope of the supply curve? 3. Economic efficiency occurs when all goods and services are produced and consumed at their socially
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Unformatted text preview: optimal quantities. Describe the socially optimal consumption of UNC basketball tickets. Is this market determined? Does the current system for allocating tickets lead to socially optimal consumption? In-class worksheet, Class 4 2 2 4. The socially optimal quantity is the quantity of a good or service that results in the maximum possible economic surplus from producing and consuming the good or service. Consider the market for pork represented in the book Eating Animals. In what sense is the current quantity of pork a socially optimal quantity? In what sense is it not? The quantity of pork is socially optimal if it doesnt take into account social/ environmental/etc costs....
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Class_4_worksheet - optimal quantities. Describe the...

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