Economics CH 1-5
Along a given supply curve , a decrease in price of a good will
Decrease producer surplus
A production possibility frontier that is a straight line slipping down from left to right would suggest that
The opportunity cost the products are constant
When a market is efficient
There is no way to make some people better off without making other people worst off
what is a good is normal
When income increases, the demand increases
Cheese over boiled new potatos, cheese price drops what will happen
a increase in demand for potatos
The typical supply curve illustrates that
other things equal the quantity supplied for a good is positively related to the price of the good
The law of demand states that other things equal
As the price increases the quantity demanded will decrease
A law of demand is
Consumer buy more personal computers because the prices have fallen
Suppose the local real estate market is in equilibrium. A recession causes local household income to decline, At the same time , construction of a large subdivision of new homes has just been completed. Give these two changes, we can predict the price of real estate will ______ and the quantity of real estate bought and sold will _________
Fall, Rise or Fall
If french fries and hamburgers are complements, hamburger ingredients rise . then what will happen to the equilibrium relative price of french fries ________ and the equilibrium quantity ________
Falls + Decreases
You notice that the price of DVD players falls and the quantity of DVD players sold increases. This set of observations can be a result of the
Supply of DVD players shifting to the right
The model that economists construct
Usually makes simplifying assumption
The economy factor of production are not equally suitable for producing different type of good , this principle generates
the law of increasing opportunity cost