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6 Cards in this Set
- Front
- Back
CS i = WTP i - P i
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consumer surplus equals willingness to pay minus price paid
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de gustibus non est disputandum
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people have differnt tastes/preferences for different things
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elasticity
if P increases and R increases... |
demand is inelastic
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elasticity
if P increase and R decreases... |
demand is elastic
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elasticity in the short run vs long run
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if you have time to plan ahead...people will shop around the find the better deal
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monopolist goals...
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a monopolist chooses price that maximizes profit knowiung that profit is a function of price
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