Knows the determinants of demand and supply and how to analyze the effect of a

Knows the determinants of demand and supply and how

This preview shows page 31 - 33 out of 49 pages.

Knows the determinants of demand and supply and how to analyze the effect of a given economic event on equilibrium price and quantity 8. Knows how to analyze the effects of government policies (e.g., price ceiling, price floor) on price and output
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The Praxis®Study Companion32Step 6: Review Study Topics 9. Understands the determinants of price elasticity of demand and the meaning of the coefficients of price elasticity of demand 10. Understands how price elasticity of demand affects the relationship between changes in price and total revenue 11. Knows total utility, marginal utility, and the law of diminishing marginal utility a. knows the definition of total utility and marginal utilityb. knows the law of diminishing marginal utilityB. Product Market 1. Understands the relationship among revenues, costs, and economic profits 2. Understands the relationship between inputs and outputs and the law of diminishing returns 3. Understands how changes in productivity and prices of inputs affect costs (e.g., MC, VC, and FC) in the short run
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