Final class - elasticity we have both the income effect and...

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Final class make sure that you know how to do present value be prepared for table and the elasticity equations mutual interdependence is significant in oligopoly slope of a horizontal = 0 vertical = indefinite in the long run, PC is earning 0 economic rents under which market structures are there only one buyer, monosomy bilateral monopoly – one seller one buyer in the long run, P=MC = Min ATC = MB = MC, all of these conditions hold. if the price of a resource is increasing, it is becoming more scarce. if you have a highly inelastic demand curve, and the price goes up, you spend more if it is elastic, you spend less. in a well functioning market, goods with high prices will have a high opportunity cost. and vis versa why is the demand curve negatively sloped and why si the supply curve negatively sloped? as more is demanded, we want it for a lower price as the price goes up, suppliers want to push more
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Unformatted text preview: elasticity we have both the income effect and substitution effect (make sure you understand this) the firms short run supply curve is segment of Marginal Cost lies above Average veriable costs characteristics of PC, mon comp, monopoly, oligopoly know these! know what causes supply curves shift if the firm is currently producing 0, the cost equals the fixed costs, rent usery ceilings make sure that we can determine which is a price ceiling and floor interest rates? know about sales maximizers economic growth can come from elimination of unemployment, technology improvements, investing in capital kinked demand curve. can you draw one? bonus question, make sure that you can have marginal revenue, demand curves. largest source of revenue for government comes from personal income taxes free rider problem understand...
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Final class - elasticity we have both the income effect and...

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