STUDY GUIDE FOR THE MID-TERM EXAM (MICROECONOMICS)
1. What are the ten principles of economics?
2. What do the principles of economics say about the most important
microeconomic issues such as incentives, opportunity cost and trade?
3. What is the definit
Everything is related with supply and demand. In two of the previous articles talked about how
prices go up after a natural disaster. In these cases people pay double or 4 times the price for
the hotel rooms because they dont have houses or a secure plate
ELASTICITY OF DEMAND and CONSUMER SURPLUS is what these three articles
have in common. Elasticity of demand is a measure of the relationship between a
change in the quantity demanded of a particular good and a change in its price.
Consumer surplus is when