Term
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Definition
| Q2-Q1 over Q1 p2 - p1 over p1 change Q over change P times P1 over Q! 1 over slope times P1 over Q1 Q2 - Q1 over P2 - p1 times p1 over Q1 |
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Term
| elastic and inelastic price change |
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Definition
| elastic price change major buy change, inelastic, price change less buy change. |
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Term
| Vertical demand change/ horizontal. |
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Definition
| Horizontal= perfectly elastic ed=infinity slope = 0. Vertical= perfectly inelastic, ed=0 slope= infinity. |
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Term
| does a shift in price change the demand curve? 5 examples. |
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Definition
| changes in consumers income, normal good or inferior good, changes in goods substitue complements, changes and expectations, changes in number of consumers |
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Term
| cross price of elasticity. |
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Definition
| The Cross-Price Elasticity of Demand measures the rate of response of quantity demanded of one good, due to a price change of another good. |
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Term
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Definition
| people want more then what is out there, price is making it so people who are willing to pay buy. |
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Term
| is financial capital a production of capital? |
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Definition
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Term
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Definition
| Cheaper cars are examples of the inferior goods. Consumers will generally prefer cheaper cars when their income is constricted. gas norm, need it even if price goes up. |
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Term
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Definition
| production costs technology upgrades the price for the product firms expectations number of suppliers |
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Term
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Definition
| economics is the study of how society manages its scares resources and studies how people make decisions on how much they work, what they buy how much they save how they invest |
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Term
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Definition
| study of who wins and losses when people take part in the market |
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Term
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Definition
| the amoun a buyer is willing to pay for a good minus the amount he actually pays for it. |
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Term
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Definition
| consumer over total surplus + producer |
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Term
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Definition
| 1/2 base)(Height)= 1/ (vertical)int -p*) |
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Term
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Definition
| ps, amount seller recives minus his cost of production. |
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Term
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Definition
| = 1/2 times base times height |
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