Econ 1 - Discussion Notes

Econ 1 - Discussion Notes - product market gives sales...

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Sheet1 Page 1 TA office hours Th 2-3 sequ 139 DO THE PRACTICE PROBLEMS!!!!!!!!!!! marginal benefit marginal cost (calculate and describe) total utility marginal utility=marginal benefit - decreases after each additional unit consumed circular flow ******************************************************************* Determinates of demand curve (curve shifts) -change in taste or preference -change in income -change in price of related goods -change in population (number of consumers) -change in expectation of future prices and incomes Determinants of supply curve (curve shifts) -change in input cost -change in technology -change in producer's expectations -change in price of related goods -change in number of suppliers -change in taxes/subsidies *Circular flow* consumer sector gives money from buying godds and services to the product market
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Unformatted text preview: product market gives sales revenues of firms to the producing sector producing sector gives business costs of production to the factor market factor market gives household income to the consumer sector product market gives commodities demanded by concumers to the consumer sector consumer sector gives land labor and capital to the factor market factor market gives employment of resources to the producing sector producing sector gives to the product market *consume outside of ppf*-economic growth-more technology-trade *why would you want to operate inside of ppf*-saving for future development 8.89E+070 8.89E+070 Sheet1 Page 2 8.89E+070 excise tax - gasoline, cigarettes, etc. (supply curve shifts as if costs of production went up- per dollar amount (shifts supply curve steeper)...
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Econ 1 - Discussion Notes - product market gives sales...

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