ECON 101 2Midtermreview

Quantity regulations that limit the amount that a

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Unformatted text preview: d above the price paid, up to the quantity bought. Figure 5.2 on the next slide shows the consumer surplus from pizza when the market price is $1 a slice. Supply, Cost, and Minimum Supply- Price Cost is what the producer gives up, price is what the producer receives. The cost of one more unit of a good or service is its marginal cost. Marginal cost is the minimum price that a firm is willing to accept. But the minimum supply- price determines supply. A supply curve is a marginal cost curve. Individual Supply and Market Supply The relationship between the price of a good and the quantity supplied by one producer is called individual supply. The relationship between the price of a good and the quantity supplied by all producers in the market...
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This note was uploaded on 03/29/2014 for the course ECON 101 taught by Professor Vanderwaal during the Spring '08 term at Waterloo.

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