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Definition
| A a combination of two programs—a minimum price, or price floor, and government purchase of any surplus. |
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Definition
| Governments may be controlled by a political process, and the study of allocation by the politics, is a significant branch of economics. |
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Definition
| This prediction lets us determine how A affects B, at least in the setting described by the model. |
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Definition
| The value of consuming a good, minus the price paid. |
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Term
| inverse of the demand function |
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Definition
| The marginal value curve is the inverse of the demand function, where the demand function gives the quantity purchased at a given price. Formally, if x(p) is the quantity a consumer buys at price p, then v(x(p)) = p. |
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Term
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Definition
| In demand, a complement in supply is a good whose cost falls as the amount produced of another good rises. |
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Definition
| This situation, in which past choices influence current decisions |
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Term
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Definition
| Percent change in quantity divided by the percent change in price |
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Term
| representation of elasticity of demand/supply |
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Definition
| The elasticity of demand is represented by epsilon while the elasticity of supply is represented by eta. |
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