Economics Basic Economic Problem (choice and the allocation of resources) Nature of the economic problem – Finite Resources – Unlimited Wants 1) Our needs are limited (finite) e.g. food‚ water‚ air‚ shelter‚ warmth. These are known as Free Goods. 2) Our wants are unlimited (infinite) e.g. clothes‚ cars‚ holidays‚ jewelry. These are known as Economic Goods. We have infinite wants but limited resources in the world. Economic Agents- (individuals‚ firms‚ and governments) have to make rational
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Chapter 4: Consumer surplus: the difference between market price and what consumers (as individuals or the market) would be willing to pay. It is equal to the area above market price and below the demand curve · the difference between the maximum amount the buyer was willing to pay and the actual price paid Producer surplus: the difference between market price and the price at which firms are willing to supply the product. It is equal to the area below market price and above the supply curve
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GE 301 Engineering economy AN INTRODUCTION ECONOMICS Definition – It is one of the social sciences‚ which consists of that body of knowledge dealing with people and their assets or resources. ECONOMICS Resource (Definition) – ● It is a material or asset that is transformed to produce benefit‚ and in the process may be consumed or made unavailable. Asset (Definition) – ● ● It is anything tangible or intangible that is capable of being owned or controlled
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ECONOMICS 1501 1: What economics is all about **Economics is the study of the use of scarce resources to satisfy unlimited wants** Wants – desires for goods and services - unlimited Needs – necessities‚ essential for survival‚ eg food and water. Demand – can only demand if you can afford it (purchasing power) Opportunity cost - value to the decision maker of the best option that could have been taken but wasn’t‚ eg watch a movie instead of studying for an exam Scarcity - time‚ space and
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is more elastic‚ then small changes in price will cause large changes in quantity consumed. If a curve is less elastic‚ then it will take large changes in price to effect a change in quantity consumed. Graphically‚ elasticity can be represented by the appearance of the supply or demand curve. A more elastic curve will be horizontal‚ and a less elastic curve will tilt more vertically. When talking about elasticity‚ the term "flat" refers to curves that are horizontal; a "flatter" elastic curve is
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Abstract :The purpose of the experiment is to explore elastic and inelastic collisions in order to study the conservation of momentum and energy. The guided track‚ carts‚ photogates ‚ 250 g weight and picket fences were the primary components used in the procedural part of the experiment. Each experiment involved the use of the photogates and picket fences to measure the initial and final velocities of both carts when they collide. The data was collected and translated to a graphical model for further
Free Kinetic energy Classical mechanics Introductory physics
consider a. the added revenue from increased sales b. the added cost of producing more goods for sale. c. interest payments on the firm’s loan. d. the cost of increased advertising. 2. When marginal revenue is positive‚ a. demand is elastic. b. marginal revenue is greater than price. c. decreasing price will decrease total revenue. d. both b and c 3. When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle‚ the result is an increase
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CONCORDIA UNIVERSITY Department of Economics ECON 201 Instructor: Ivan Tchinkov Exam duration: 60 min. SAMPLE MIDTERM EXAMINATION WITH ANSWERS Version 1 Instructions: 1. Write your answers on the IBM SHEET ONLY. 2. Use a PENCIL. 3. Put your NAME and ID on the IBM sheet. 4. Put the EXAM VERSION on the top right corner of the IBM sheet. Multiple Choice Questions (2 marks each). 1. Which of the following statements is correct for a society that emphasizes the production
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Law of Conservation of Momentum 6. Elastic Collision 7. Inelastic Collision 8. Perfectly Inelastic Collision 2. a force that does not increase the net momentum of a system. 1. Momentum 2. Impulse 3. External Force 4. Internal Force 5. Law of Conservation of Momentum 6. Elastic Collision 7. Inelastic Collision 8. Perfectly Inelastic Collision 3. Two objects collide‚ stick
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sales of this other good?“ iii. "If we learn that a resource is becoming scarce‚ will people scramble to acquire it?" 2 Price Elasticity of Demand • Measures buyers’ responsiveness to price changes • Elastic demand - Sensitive to price changes - Large change in quantity • Inelastic demand - Insensitive to price changes - Small change in quantity 3 Price Elasticity of Demand: Formula • Ed = Percentage Change in Quantity Demanded of Product X -----------------------------------------Percentage
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