Predict the changes in prices and quantities given changes in demand andor

Predict the changes in prices and quantities given

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Predict the changes in prices and quantities, given changes in demand and/or supply. Interpret and compute equilibrium price and quantity from graphs, and/or data. Ch. 3: Supply, Demand, and Price: The Theory Ch.4: Applications of Supply and Demand Ch. 18: Elasticity
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Interpret market conditions given novel data. Define and explain the effects of price ceilings and price supports. Define, explain, calculate, and interpret the price elasticity of demand. Identify and interpret the relationship between the price elasticity of demand and the effect of a price change on total revenue. List and explain the determinants of price elasticity of demand. Define, calculate, and interpret cross elasticities and income elasticities of demand. Calculate and explain the price elasticity of supply. Explain the burden of taxation given elasticity information Topic #2 - Theory of Consumer Choice 1. Total utility and marginal utility 2. Utility maximization: equalizing marginal utility per dollar 3. Individual and market demand curves 4. Income and substitution effects Performance Objectives You must be able to: Explain the theory of marginal utility and its relationship to demand. Construct and interpret marginal utility schedules and curves. Explain how a rational individual decides what to purchase, given necessary information about utility, prices, and income. Derive consumer demand schedules and curves, given necessary information about utility, prices, and income. Unit III – Production and Costs and Perfect Competition Topic #1 - Production and Costs 1. Production functions: short and long run 2. Marginal product and diminishing returns 3. Short-run costs 4. Long-run costs and economies of scale 5. Cost minimizing input combination and productive efficiency 6. Accounting versus economic profits 7. Normal profit Performance Objectives You must be able to: Define, explain, and calculate total product, marginal product, and average product, and describe the relationship among these concepts. Define and interpret production functions. Define and differentiate between short run and long run and between fixed and variable inputs. Define the law of diminishing returns and explain how it is depicted by the total product and marginal product curves. Explain the relationship between production and cost. Define and differentiate between explicit and implicit costs. Define and calculate cost graphs. Calculate and define fixed, variable, average, marginal, and total costs, and explain how they vary with the level of output in the short run and long run. Define and explain economies and diseconomies of scale and constant returns to scale. Define and calculate the least-cost combination of inputs to employ for an existing firm.
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