{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ch 3 -- terms and concepts

Ch 3 -- terms and concepts - Things that cause Supply to...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch. 3 – Terms and Concepts Demand: Law of demand difference between a change in D and a change in Qd elasticity of demand consumer surplus marginal utility height of the demand curve things that cause demand to shift – number of consumers in the market – income * normal goods * inferior goods – price of related products * complementary goods * substitute goods – expectations – tastes and perferences Supply: law of supply difference between a change in S and a change in Qs elasticity of supply producer surplus marginal cost height of the supply curve
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Things that cause Supply to shift: – Cost of Production – Changes in technology – Number of sellers in the market – Natural disasters – Tax policy What determines price in a competitive market in the absence of government intervention? What causes shortages (or excess demand)? How do you eliminate a shortage? What causes surpluses (or excess supply)? How do you eliminate a surplus? The Invisible Hand principle. Do we need government intervention to set price in a competitive market?...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern