Upgrade to remove ads Show Only A$47.99/year
Terms in this set (18)Demand shows.... the quantities of a product that will be purchased at various possible prices, other things equal. To be meaningful, the quantities demanded at each price must relate to what? A specific period—a day, a week, a month. Saying "A consumer will buy 10 bushels of corn at $5 per bushel" is meaningless. Saying "A consumer will buy 10 bushels of corn per week at $5 per bushel" is meaningful. Unless a specific time period is stated, we do not know whether the demand for a product is large or small Does the law of demand have a negative or positive relationship between price and quantity? negative or inverse relationship. What critical assumption does the law of demand have? The other-things-equal assumption. What is diminishing marginal utility? successive units of a particular product yield less and less marginal utility (satisfaction), consumers will buy additional units only if the price of those units is progressively reduced. What are "determinants of demand" or "demand shifters"? When any of these determinants changes, the demand curve will shift to the right or left. The basic determinants of demand are What are superior/normal goods? Products whose demand varies directly with income What are inferior goods? Goods whose demand varies inversely with income What are substitute goods? When two products are substitutes, an increase in the price of one will increase the demand for the other. Leather jackets and fleece jackets. an increase in demand may be caused by: • A favorable change in consumer tastes. A change in demand must not be confused with a change in quantity demanded. A change in demand is a shift of the demand curve to the right (an increase in demand) or to the left (a decrease in demand). a change in quantity demanded is a movement from one point to another point—from one price-quantity combination to another—on a fixed demand schedule or demand curve. Is the law of supply a direct or indirect relationship? A positive or direct relationship between price and quantity supplied. What 6 basic things determine supply? (Determinants of supply or supply shifters) (1) resource prices,
What does a shift to the right on the supply curve signify? an increase in supply: Producers supply larger quantities of the product at each possible price. What does a shift to the left on the supply curve indicate? A decrease in supply: Producers offer less output at each price. The term "demand:" A. With a downsloping demand curve and an upsloping supply curve for a product, a decrease in resource prices will: C. An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the: D. Recommended textbook solutions Principles of Microeconomics7th EditionN. Gregory Mankiw 881 solutions Essentials of Investments8th EditionAlan J. Marcus, Alex Kane, Zvi Bodie 667 solutions Principles of Microeconomics6th EditionRichard L Daft 788 solutions Mankiw's Principles of Macroeconomics6th EditionN. Gregory Mankiw 436 solutions Sets with similar termsMacroeconomics Chapter 327 terms chiarat369 AP Economics Chapter 336 terms ricster99 Macroeconomics Chapter 339 terms Kim_Scott Macroeconomics (Eco 12) Chapter 3 Demand, Supply a…33 terms Stephanie_Pujols5 Sets found in the same folderFinal95 terms nobitzw1 Econ 101 Chapter 829 terms shea-d Chapter 1123 terms amatu013 Econ Chapter 228 terms DanniisParadox Other sets by this creatorChapter 513 terms smaue Chapter 429 terms smaue N3 May 9: Chap 47.21 terms smaue N3 May 9: Guillain-Barre and Myasthenia…46 terms smaue Verified questions
ECONOMICS It is claimed that Proactine, a new medicine for acne, is 80 percent effective. It is applied to the affected area of a sample of 15 people. What is the probability that: a. All 15 will show significant improvement? b. Fewer than 9 of 15 will show significant improvement? c. That 12 or more people will show significant improvement? Verified answer
ECONOMICS Think of an example of a macroeconomic issue that affects an individual person, family, or business, and explain its effect. Verified answer
ECONOMICS What do you think are the defining characteristics of a science? Do you think macroeconomics should be called a science? Why or why not? Verified answer
ECONOMICS How is buying a house to live in a type of financial investment? Verified answer Other Quizlet setsEcon written final16 terms hfoland21 Microeconomics - Market Failures15 terms Abby_Kunze ECON 201 CHPT 747 terms skacharos7 Chapter 2125 terms Lindsay_Starnes Related questionsQUESTION What does the fair value of a non financial asset assume? 2 answers QUESTION According to the graph below, if a country is currently producing at point X, the opportunity cost of producing another consumer good is 7 answers QUESTION The administrative costs of regulation include the opportunity costs of the factors of production used by government to administer the regulations. 2 answers QUESTION The midpoint method is used to calculate elasticity between two points because it gives the same answer regardless of the direction of the change. 12 answers What is the effect of an increase in excise taxes?In the short run, an excise tax increases the price of the product, albeit by less than the full amount of the tax, and the price burden is shared by both the producers and the consumers. The exact effect depends on the elas- ticities of demand and supply for the product.
What is the effect of an increase in excise taxes quizlet?An excise tax increases production costs by adding an extra cost for each unit sold. How does a subsidy affect supply? Subsidies will decrease the costs of production and therefore increase quantity supplied.
What happens in the market for cigarettes if the government imposes a tax on cigarettes?In the market for cigarettes, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. A tax of $3.50 per pack is imposed on cigarettes. The tax reduces the equilibrium quantity in the market by 5,000 packs.
Is supply for cigarettes elastic or inelastic?Because smoking is a habit so hard to kick, demand for cigarettes is highly inelastic - meaning that large price changes induce only small changes in the quantity demanded. Equivalently, only large price increases (decreases) will shrink (stretch) demand because the demand is inelastic to price changes.
|
An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the:
Postagens relacionadas
direito autoral © 2024 comojogaruno Inc.
