Consumption and Production
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| What makes a perfect competition market? | show 🗑
|
||||
| show | Demand slope is always negative.
🗑
|
||||
| show | Supply slope is always positive
🗑
|
||||
| show | The price "per se" of a good
🗑
|
||||
| show | The price of a good compared to the price of other good. (With the same money, what ratio of good 1 can you buy compared to good 2). I.E.:
1kg bread-2€/1kg meat-10€
Relative price of bread-meat is 0,2. With 2€ you can buy 1kg of bread or 0,2 kg of meat.
🗑
|
||||
| show | The maximum value I'm willing to pay for a good
🗑
|
||||
| show | The quantity of a good I'm willing to buy for all prices
🗑
|
||||
| Supply | show 🗑
|
||||
| show | 1.Price
2.Preferences/Taste
3.Income
4. Substitutes/complementary goods
5. Number of consumers
6. Expectations
🗑
|
||||
| How does the price (1) affect the demand curve? | show 🗑
|
||||
| show | The curve shifts to the right if the good is now more liked because for the same prices there are more buyers now. If disliked the curve shifts left, for the same price there are less buyers
🗑
|
||||
| show | An increase of income shifts the curve to the right, same price more buyers. A decrease of income shifts the curve left, same price less buyers
🗑
|
||||
| How does the related goods (4) affect the demand curve? | show 🗑
|
||||
| show | With a rise in the nº of consumers, the curve shifts right, same price, more buyers.
If the nº of buyer decreases, same price less demand
🗑
|
||||
| How does the expectations (6) affect the demand curve? | show 🗑
|
||||
| show | 1. Price
2. Technology
3. Input prices (cost of production)
4. Prices of related goods (substitutes/complements)
5. Nº of producers
6. Expectations
7. Other (industry specific) factors
🗑
|
||||
| How does the price (1) affect the supply curve? | show 🗑
|
||||
| How does the technology (2) affect the supply curve? | show 🗑
|
||||
| show | If the cost of production increases the supply curve shifts left, same price less production.
If the cost of production decreases the curve shifts right, same price more production
🗑
|
||||
| How does the price of related goods (4) affect the supply curve? | show 🗑
|
||||
| show | If the number of producers increase the curve shifts right, same price more production (Q)
If it decreases the curve shifts left, same price less production
🗑
|
||||
| show | If a producer thinks price is going to go up, they will reduce the production today in order to make more benefit increasing the production when thr goods price increase. Viceversa
🗑
|
||||
| show | For example weather for agriculture, if the weather isn't favorable the production wil decrease, thus the curve shifts left
🗑
|
||||
| Equilibrium point | show 🗑
|
||||
| If the supply/demand curve shifts does the equilibrium price change? | show 🗑
|
||||
| What is the Price Elasticity of Demand? | show 🗑
|
||||
| show | A change in Q greater than 1% when price changes 1%.
Elasticity>1
🗑
|
||||
| show | A change in Q smaller than 1% when price changes 1%.
Elasticity<1.
🗑
|
||||
| show | 1. Goods with easy substitutes have more elastic demand
2. Necesities lower elasticity whereas luxuries higher elasticity
3. Narrowly defined markets- high easticity/broadly defined markets- lower elasticity
4. Goods higher elasticity over longer time
🗑
|
||||
| Formula of Price Elasticity of Demand | show 🗑
|
||||
| What is unit elasticity? | show 🗑
|
||||
| When is total revenue (TR) is maximum? | show 🗑
|
||||
| Graphically, how is an elastic curve? | show 🗑
|
||||
| Graphically, how is an inelastic curve? | show 🗑
|
||||
| When a good is easily substituted, Price Elasticity of Demand is elastic or inelastic? | show 🗑
|
||||
| show | Inelastic
🗑
|
||||
| What is Income Easticity of Demand? | show 🗑
|
||||
| Graphically, how is a perfectly elastic curve? | show 🗑
|
||||
| Graphically, how is a perfectly inelastic curve? | show 🗑
|
||||
| How does TR change as we move along the demand curve? | show 🗑
|
||||
| What is an Engel curve? | show 🗑
|
||||
| What is a normal good? | show 🗑
|
||||
| What is an inferior good? | show 🗑
|
||||
| What is a necessity? | show 🗑
|
||||
| What is a luxury? | show 🗑
|
||||
| show | Measures how Q of a good changes when ther price of another good changes
🗑
|
||||
| show | E(pr)>0 <=> Pr^ => Qr v => Q ^
🗑
|
||||
| What is a complement? | show 🗑
|
||||
| What is he formula for the Income Elasticity of Demand? | show 🗑
|
||||
| show | E(pr)= - 1/slope * Pr/Q
🗑
|
||||
| show | The change in Q when P changes 1%.
E(supply)= (%change in supply Q)/(%change in price)
E(supply)= 1/slope * P/Q
🗑
|
||||
| show | Evaluating changes in consumer and producer surplus
🗑
|
||||
| show | The difference between the amount buyer is willing to pay for a good and the amount he finally pays
🗑
|
||||
| show | The difference between the amount he sells a product minus the production cost
🗑
|
||||
| What is a price ceiling? | show 🗑
|
||||
| show | A stop the goverment puts to the price, its the minimum price you can buy/sell a product
🗑
|
||||
| What are taxes? | show 🗑
|
||||
| How does a tax on the sellers affect the equilibirum price? | show 🗑
|
||||
| show | The demand curve shifts left. Sellers recieve less money and sell less.
🗑
|
||||
| show | Both cases place a wedge between the price tha buyer buy and seller sell, the only difference is who pays the goverment
🗑
|
||||
| show | Seller or buyer, depends on which side is less elastic
🗑
|
||||
| What is the budget constraint and its formula? | show 🗑
|
||||
| show | The slope is the relative price between x and y (-Px/Py). The cut with axis are (m/Py) in y axis and (m/Px) in axis x, this represents the maximum amount of good x or y, respectively that I can buy.
🗑
|
||||
| show | If Py increases, (m/Py) v and (-Px/Py) the same.
If Py decreases, (m/Py) and (-Px/Py) ^
If Px increases, (m/Px) and (-Px/Py) v
If Px decreases, (m/Px) and (-Px/Py) ^
🗑
|
||||
| What are the properties of preferences? | show 🗑
|
||||
| Properties of preferences, what is Completeness? | show 🗑
|
||||
| show | We consider a preference relation transitive if bundles A >~B and B >~C then we can assume that A>~C
🗑
|
||||
| Properties of preferences, what is Monotonicity? | show 🗑
|
||||
| Properties of preferences, what is Convexity? | show 🗑
|
||||
| show | With indiference curves (IC) and utility function u(.)
🗑
|
||||
| What is the Indiference Curve (IC)? | show 🗑
|
||||
| show | In plane x/y, represents the preference relation ">~"
u(A) >=u(B) => A>~B
🗑
|
||||
| What is the Marginal Rate of Substitution (MRS)? | show 🗑
|
||||
| MRS is higher or lower if x^? | show 🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
Nickrs8
Popular Economics sets