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30 Cards in this Set
- Front
- Back
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equation for a simple linear function or a change in the independent variable
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Y = z + wX
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slope
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change in y over the change in x
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elasticity
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E= % change in quantity demanded/ % change in price of the good
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elasticity demanded equal to zero
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perfectly inelastic demand
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elasticity demanded greater than zero but less than 1
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inelastic demand
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elasticity demanded equal to one
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unit elastic demand
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elastic demand greater than one and less than infinity
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elastic demand
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elastic demand = infinity
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perfectly elastic demand
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using initial values for elasticity of demand
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e= (new quantity-originial quantity /original quantity)divided by (new price - original price/ original price)
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change in supply or demand
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% change in price = % change in demand/ es + ed
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budget constraint
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I = PxX + PyY
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relative price
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one price/another price
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consumer of optimum
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MRSmb= PM/PB
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average variable cost
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AVC = VC / Q
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marginal cost
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MC = change in TC/ change in Q
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short run cost curves
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ATC = AVC + AFC
AFC = ATC - AVC |
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consumer optimum
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MRSxy = Px/Py
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marginal benefit
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Change in TB/ change in Quantity
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demand price or expected value
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PpVp + p1v1
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external benefits
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marginal social benefit = marginal private benefit + marginal external benefit
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external costs
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marginal social costs = marginal private cost + margincal external cost
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marginal product of labor
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MPl = change in Quantity/ change in labor
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marginal revenue product
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MRPl = MPl X P
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marginal revenue
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MR = change in TR / change in quantity
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perfectly competitive market
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pi = TR -TC
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the equilibrium price under an import quota is _____ the price that occurs with an import ban and ______the price that occurs with free trade
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below, above
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historically apparel and textiles were subject to high tariffs, why might this hurt low-income consumers more than high income?
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these good represent a higher fraction of the consumption of lower income consumers than high income consumers
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many economists argue that industries that are protected from international competition are slower to innovate than industries that face worldwide competition. assuming this is true what is the argument for tariff protection for infant industries
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becomes weaker since the protected firms are likely to grow up much too slowly if even at all
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the average tariff in the united states is
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5 %
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we measure the opportunity cost of holding money with:
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the interest rate
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