Exam (elaborations)
ECON 1B03 - Chapters 1-6 Midterm Study
- Course
- Institution
ECON 1B03: Chapters 1-6 Midterm Study
[Show more]
Content preview
1-117 of 117What is the formula for producer surplus?
Give this one a go later!
PS = P - WTS
What does Eab measure and what is its formula?
,Give this one a go later!
Measures the response of Qd of good A to a change in price of good B.
Eab = change in Qd of good A / change in P of good B
What does microeconomics focus on?
Give this one a go later!
Focuses on specific markets/industries
How do we use the Coase Theorem?
Give this one a go later!
Take a look at who has the property rights (PR) and make the costs and
benefits make sense.
What happens when both S and D shift?
Give this one a go later!
, The equilibrium of P and Q will depend on the magnitude. If we don't know
the magnitude of the change, then we consider 3 scenarios. 1) is where Q
and S shift at the same amount, 2) is when demand shifts more, 3) is when
supply shifts more. From drawing these we'll see that one of the variable
stays the same regardless, but one will change (we call that variable
ambiguous)
When is En income inelastic?
Give this one a go later!
-1 < En < 1 - this means the good is a necessity
Consider Qd = 10 + 0.0004N - 2A - 2P, (A is price of related good), what do the signs
of A tell us?
Give this one a go later!
The sign of A tells us if the goods are substitutes or complements. If
postitive, the goods are substitutes. If negative, the goods are
complements.
What is the law of supply?
Give this one a go later!
, P and Qs are positively related, if P goes up so does Qs as firms want to
supply more / sell more at this raised price.
What is the law of demand?
Give this one a go later!
P and Qd are negatively related, if Price goes up then Qd goes down and
vice versa
What is WTS?
Give this one a go later!
The lowest price a seller will take to produce a good
Is elasticity constant along the demand curve?
Give this one a go later!
No! A change from $1 -> $2 is 100% increase but from $9 -> $10 is a lot less
What does autarky mean?
Give this one a go later!
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller codersimon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now