Total Revenue correct answers Price x Quantity
consumer surplus correct answers difference between market price and what consumers are willing to pay
producer surplus correct answers difference between market price and the price at which firms are willing to supply it
Deadweight loss corre...
ECON 212 Exam 2 UNL || WITH ANSWERS!!
Total Revenue correct answers Price x Quantity
consumer surplus correct answers difference between market price and what consumers are
willing to pay
producer surplus correct answers difference between market price and the price at which
firms are willing to supply it
Deadweight loss correct answers the loss of consumer surplus and producer surplus caused
by the inefficiency of a market that is not operating at equilibrium
productive efficiency correct answers producing output at the lowest possible average total
cost of production
allocative efficiency correct answers producing the goods and services that are most wanted
by consumers in such a way that their marginal benefit equals their marginal cost
price ceiling correct answers maximum allowable price by law
price floor correct answers minimum allowable price by law
price elasticity of demand correct answers % change in quantity / % change in price
Ed<1 correct answers inelastic
Ed>1 correct answers elastic
Ed=1 correct answers unit elastic
midpoint formula correct answers (Q2-Q1)/[(Q2+Q1)/2] / (P2-P1)/[(P2+P1)/2]
When demand is inelastic correct answers price changes are larger than quantity changes
when demand is elastic correct answers quantity changes are larger than price changes
When demand is unit elastic correct answers quantity changes are equal to price changes
cross elasticity of demand correct answers (% Change in Quantity a) / (% Change in Price of
b)
substitute correct answers Ea,b>0
compliment correct answers Ea,b<0
not related correct answers Ea,b=0
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