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.
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
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