# Shared Flashcard Set

## Details

ECN 143:2/28/16:Notes
ECN 143:2/28/16:Notes
14
Economics
02/28/2016

Term
 How does one Algebraically Calculate Budget Constraints?----
Definition
 "Total Income"= ("Price of Good X" * "Amount of Good X Purchased") + ("Price of Good Y" * "Amount of Good Y Purchased")----
Term
 How does one obtain the expression for the budget line?----
Definition
 "Budget Line"=("Total Income"/"Price of Good Y")-("Price of Good X"/"Price of Good Y")*"Amount of Good X purchased"---
Term
 What is the Horizontal Intercept of a Budget Line?---
Definition
 "Total Income"/"Price of Good X"---
Term
 What is the Vertical Intercept of a Budget Line?-----
Definition
 "Total Income"/"Price of Good Y"---
Term
 What is the slope of a budget line?----
Definition
 -Price of Good X/Price of Good Y=Price Ratio-----
Term
 What is the midpoint formula?---
Definition
 ((Change in Quantity)/((q0+q1)/2))/((Change in Price)/((p0+p1)/2))----
Term
 What does midpoint formula do?----
Definition
 Takes the average elasticity between any two points along a demand function.-----
Term
 What does (Ed^m) represent?----
Definition
 Elasticity of Demand found through midpoint formula.-----
Term
 How to solve for equilibrium price?-----
Definition
 Set quantity demanded equal to quantity supplied and solve for P.-------
Term
 How to solve for equilibrium quantity?------
Definition
 Plug the equilibrium price into the quantity supplied or quantity demanded function and solve.-----
Term
 What is the algebraic formula for Elasticity?-----
Definition
 (Slope)*(Price/Quantity Demanded)-----
Term
 What is Slope?---
Definition
 Ratio of absolute changes of quantity demanded and quantity supplied.-----
Term
 What is the slope of this demand function?Q=A-BP---
Definition
 -B---
Term
 What is another interpretation of how one obtains the expression for the budget line?----
Definition
 "Budget Line"=("Vertical Intercept")-("Price of Good X"/"Price of Good Y")*"Amount of Good X purchased"---
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