Indifference curve: a curve depicting alternative combinations of
goods that yield equal satisfaction.
This is a mechanism for illustrating consumer preferences.
It can be used as a basis from which to construct a demand curve.
Prices are important in determining consumer behavior.
New products have to be priced correctly. The price could be set too
high and suppress sales or too low and suppress profits.
In this chapter we look at how the price affects consumer
When businesses need to decide whether or not to change the price of a product they look at the law of
demand which tells us as price goes down quantity supplied goes up. This is also true of the opposite as
price goes up quantity supplied goes down. Pric
Graphs in Economics
Data! Data! Data! he cried, impatiently.
I can't make bricks without clay."
Sherlock Holmes (by Sir Arthur Conan Doyle)
-3 -2 -1 0 1 2 3 4 5
horizontal number line
(X axis usually shows the
If a seller needs to reduce the price of a product, how much
should it be reduced?
Reduce too little, and projected increase in sales will not meet desired
Reduce too much, and the projected profit target might not be
Since Janes preferences have not changed than I do not think her consumption of hot dogs would
change. However, since the price of caviar has rose then she may choose to spend the extra money on
the caviar if that is the case than her consumption of
Fixed cost never change regardless of whether or not there is an increase or decrease in the amounts of
goods sold. These particular cost are due regardless of sales. A factory is an example of a fixed cost since
regardless of whether they produce a good
Auxiliary Problems for Chapter 14
In what transaction would the Federal Reserve Bank engage, if it wanted to increase the
money supply through open market operations?
2. List the different methods the Federal Reserve Bank can use to increase the money s
Mod 6, Chapter 13
Type your answers in the yellow cells below.
The cell will turn green when you enter the correct answer.
HELP! Audio Explanation To
Show Me An Exam
Explain Required And Exc
Required And Excess Reserves: Pag
Econ 220, Chap 20
Type your answers into the green cells below.
Enter your na
Please note: Do no
HELP! Audio Explanation To Get You Started
Show Me An Example
Explain Price E
17-2 Game Show Uncertainty
Probability = 0.5
50% chance of winning $1,000,000, but 50% chance of losing $500,000
Expected value is (0.5)(-500,000) + (0.5)(1,000,000) = 250,000
He should make an attempt to guessing as he has a 50% chance of doubling his wi
G11-2 Exchange Rate Effects on YogaWorks
Gemma J. Loresca
Professor Alisher Akhmedjonov
June 15, 2016
Grand Canyon University
According to Investopedia, exchange rate is defined as the price of a nations currency
in terms of another cu
Elasticity 1 Elasticity 2
22.22% Change in price
Quantity Demanded (oz./show)
Carol & Isabella
Market Demand for price
Suppose a country can produce a maximum of 20,000 jumbo airliners or 2,000 aircraft carriers.
a) What is the opportunity cost of an aircraft carrier?
b) If another country offers to trade 6 planes for one aircraf
What is the equilibrium price?
How large a market shortage would exist if government set a price ceilingof $2 per
Role of Government and Market Failures
The function of a market system involving both the private and public sector is discussed in
these chapters and relates to a group assignment that analyzes a case study of market failure. A
Introduction to Economics and Supply and Demand
The textbook provides some key economic definitions and concepts differentiating between
microeconomics and macroeconomics. This module explores scarcity and opportunity costs,
laws of supply an
Floating exchange rate is determined by supply and demand of foreign currency while fixed is the
determined by comparing its value to a third currency. Developing nations would want a fixed exchange
rate because they can normalize its strength and do
With lower interest rates we have a lower value associated with the dollar. This increases exports. The
book explains this best. The European Central Bank (ECB), the U.S. Federal Reserve, and the Bank of
Japan all announced policies to purchase finan
MPC is the marginal propensity to consume. I feel that since the recession of 2008-2009 the nations NPC
has come up. We as a nation are avid consumers. We are fed consumerism through just about
everything we see and do. Also in order for an economy t