Term

Definition
A a combination of two programsâ€”a minimum price, or price floor, and government purchase of any surplus. 


Term

Definition
Governments may be controlled by a political process, and the study of allocation by the politics, is a significant branch of economics. 


Term

Definition
This prediction lets us determine how A affects B, at least in the setting described by the model. 


Term

Definition
The value of consuming a good, minus the price paid. 


Term
inverse of the demand function 

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. 


Term

Definition
In demand, a complement in supply is a good whose cost falls as the amount produced of another good rises. 


Term

Definition
This situation, in which past choices influence current decisions 


Term

Definition
Percent change in quantity divided by the percent change in price 


Term
representation of elasticity of demand/supply 

Definition
The elasticity of demand is represented by epsilon while the elasticity of supply is represented by eta. 

