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Econ > Micro Economics > Flashcards

Micro Economics Flashcards

1
Q

Demand rises while price falls

A

Law of demand

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2
Q

Price rises income stays the same, effect on demand ?

A

Fewer goods bought

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3
Q

To have a demand for a good

A

Willing and able to buy good at given price

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4
Q

Consumer act when price of good increases

A

Substitute for cheaper item

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5
Q

What causes demand curve to shift

A

Change in demographics

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6
Q

How elasticity effects business pricing policy

A

Increase in price, reduce total revenue

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7
Q

Elasticity demand measures

A

Consumers demand affected by price

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8
Q

How does consumer need vs. want of product affect purchase

A

Consumer will purchase needed good no matter the price

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9
Q

What does availability of substitutes have on elasticity of demand

A

More elastic

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10
Q

Which is inelastic: steak or medicine

A

Medicine

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11
Q

Ceteris Parbius

A

All things other than price hold constant

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12
Q

Owners of digital cameras have to buy memory cards in order to use cameras. Cameras and memory cards are.

A

Complements

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13
Q

elasticity of demand formula

A

% change in quantity/ % change in price

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14
Q

Paper plate factory make more paper plates when market price goes up on

A

Law or supply

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15
Q

Always rises from left to right

A

Supply curve

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16
Q

When price or product goes down producers

A
  • Produce less

- leave market

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17
Q

A supply schedule shows

A

Supply for goods at different prices

18
Q

How does technology affect production

A
  • increases supply

- cheaper

19
Q

Fixed costs

A

Cost don’t change no matter supply

20
Q

If company makes product at 15$ for five of them and 16$ to make six of them the 1$ difference Is

A

Marginal cost

21
Q

If supplier reports marginal revenue is at 5$ this means

A

Consumers pay market price of 5$

22
Q

Subsidies

A

Government influence on supply

23
Q

A minimum price for soybeans is an example of

A

Government subsidy

24
Q

Cargo ships & haircuts, which is likely to be inelastic in short term

A

Cargo ships

25
Q

Why does perfectly competitive market require many buyers/ sellers

A

So one individual can’t control price

26
Q

Which market structure is easiest for newcomer

A

Perfect competition

27
Q

Example of non price competition for business competing in monopolistic market

A

Advertising

28
Q

2 to 4 business producing 70%-80% of output

A

Oligopoly

29
Q

Why might government give drug company a patent

A

So they can pay to develope new drugs

30
Q

Price discrimination

A

Charging different groups different prices of product

31
Q

Why can monopolistic competition include some variety

A

They are in competition with businesses selling similar products

32
Q

Why does government allow natural monopoly

A

Limit waste and maintain reasonable prices

33
Q

How long are copyrighted works protected by law

A

70 years after author death

34
Q

Consequences or plagiarism

A
  • sued for fraud
35
Q

Price of good when shortage occurs

A

Increase until quantity of demand equals quantity supplied

36
Q

When market is disequilibrium and prices are flexible

A

Market pushes toward equilibrium

37
Q

Why does government place price ceilings on essential goods

A

Limit impact of equilibrium pricing

38
Q

In supply exceeds demand of product producer should

A

Lower price

39
Q

Ways government controls markets

A
  • price ceiling

- price floors

40
Q

Demand for fad drops

A

Excess supply makes food easy to obtain

41
Q

What most likely will create black market

A

Rationing

Econ (2 decks)

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