April 21, 2015
1. Partial equilibrium analysis is when both sides of the market shift simultaneously.
2. The position of a demand curve is affected by changes in the price of good.
II. Economic Modes: Trade-offs &Trades
Models in economics
1. The PPF (Production Possibility Frontiers)
Essay question/ illustrates the trade-offs
facing an economy that produces only two
goods. It shows the maximum quantity of one
good that can be produ
True and False
1. The law of diminishing returns does not explain the right side of the long-run ATC.
Answer is True because.
3. A straight line demands schedule has varying elasticities throughout its length. Answer is true
5. Elasticity of demand is not