ECON Chapter 3 (Connect)

exclusivity

The degree to which the consumption of the good can be restricted by a seller to only those who pay for it.

excludable public good

a good with the characteristic of exclusivity but not of rivalry

congestible public good

a good with the characteristic of rivalry but not of exclusivity

congestible public good

Identify what type of good a lighthouse is.

demand is elastic

If a firm cannot determine the demand for the good it sells is elastic or inelastic but discovers that every time it raises its price, its total revenue declines, it can conclude its:

rivalry

The degree to which one person's consumption reduces the value of the good for the next consumer.

but also the (price, quantity) position on the demand curve

The elasticity of demand is related to the slope of the demand curve:

inelastic steep

A 14 percent decrease in price results in a 10 percent increase in quantity demanded. In this case, demand is: The demand curve for this good would be relatively:

inelastic

A 7 percent decrease in price results in a 4 percent increase in quantity demanded. In this case, demand is:

inelastic

A retailer noticed that by decreasing its price, its total revenue decreased. In this case, demand is:

purely public good

A good with neither of the characteristics of exclusivity or rivalry.

purely private good

A good with the characteristics of both exclusivity and rivalry.

as big as it can be.

Combined the consumer surplus and producer surplus at equilibrium is:

greater price stability

In the last five years, the elasticity of supply for gasoline has increased dramatically. All other things equal, this would be expected to contribute to:

it is very cheap food.

The fact that the demand for pasta is inelastic should not surprise you because:

excludable public good

When a satellite television company gains a subscriber, there is no impact on existing subscribes. That is, there is no rivalry in the consumption for their service. This is an example of:

there are winners and losers but that the gain to the winners is greater than the loss to the losers.

When looking at the impact of a change in trade policy, economists use consumer and producer surplus to look at the winners and losers. Free-trade economists insist that: