Microeconomics

Question 1

Demand curve

Answer 1

has a negative slope. Quantity is the x axis (bottom) as price lowers the quantity demanded increases.

Question 2

Quantity and Price

Answer 2

Price is an independent variable, Quantity supplied is a dependent variable based on price.

Question 3

Elasticity

Answer 3

Inelastic- price goes up quantity sold stays the same (hydroflasks) Highly inelastic is -2.

Elastic- Price goes up and quantity sold goes down. Highly elastic is 2.

Question 4

Perfect competition

Answer 4

the market price of a commodity is beyond the control of individual buyers and sellers. In perfect competition, price is always equal to (the same as) marginal revenue.

Question 5

Marginal Revenue

Answer 5

additional revenue that will be generated by increasing product sales by one unit.

Question 6

Monopolistic competition

Answer 6

In monopolistic competition, firms sell a product or service that is only slightly differentiated; the product or service is similar to, but not identical with, other products or services.
In addition, monopolistic competition has the following characteristics:
A large number of sellers.
Close substitutes for the product or service.
Ease of entry into or exit from the market.