m Consumer surplus the value consumers get from a good but do not have to pay

M consumer surplus the value consumers get from a

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m.Consumer surplus: the value consumers get from a good but do not have to pay for.n.Market supply curve: a curve indicating the total quantity of a good that all producers in a competitive market would produce at each price, holding input prices, technology, and other variables affecting supply constant. o.Change in quantity supplied: changes in the price of a good lead to a change in the quantity supplied of that good. This corresponds to a movement along a give supply curve. p.Change in supply, changes in variables other than the price of a good, such as input prices or technological advances, lead to a change in supply. This corresponds to a shift of the entire supply curve. q.Supply shifters: variables that affect the position of the supply curve are called supply shiftersVerspreiden niet toegestaan | Gedownload door Fatima Oulmouden ([email protected])lOMoARcPSD
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r.Excise tax is a tax on each unit of output sold, where the tax revenue is collected from the supplier.s.An ad valorem tax is a percentage tax. t.Supply function: a function that describes how much of a good will be produced at alternative prices of that good, alternative input prices, and alternative values of other variables affecting supply. Verspreiden niet toegestaan | Gedownload door Fatima Oulmouden ([email protected])lOMoARcPSD
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u.Producer surplus: the amount producers receive in excess of the amount necessary to induce them to produce the good.v.Price ceiling: the maximum legal price that can be charged in a market. w.Full economic price: the dollar amount paid to a firm under a price ceiling, plus the nonpecuniary price. x.Price floor: the minimum legal price that can be charged in a market. y.An excise tax is a tax on each unit of output sold, where the tax revenue is collected from the supplier. z.An ad valorem tax literally means “according to the value”. It is a percentage tax. Verspreiden niet toegestaan | Gedownload door Fatima Oulmouden ([email protected])lOMoARcPSD
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aa.Comparative static analysis: the study of the movement from one equilibrium to another. bb.The full economic price is the price such that quantity demanded equals the available units. 2.Key points a.Producer expectations about future prices also affect the position of the supply curve. b.Verspreiden niet toegestaan | Gedownload door Fatima Oulmouden ([email protected])lOMoARcPSD
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3.Formulas a.Demand function b.Supply functionVerspreiden niet toegestaan | Gedownload door Fatima Oulmouden ([email protected])lOMoARcPSD
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Chapter three 1.Definitions
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