Txst econ 2314 Study guides, Class notes & Summaries

Not all welfare changes are associated with ______________ _________________ correct answers monetary transactions Person A --- Affects ---> Person B No money transfer correct answers An negative externality arises Which of the following is an example of a positive externality? a) air pollution b) a nice garden in front of your neighbor's house c) a person throwing garbage in a public park d) a noisy neighbor holding a party next to your door correct answers b) a nice garden ...

Law of Demand correct answers Holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease. The Law of demand tells us the ________ but not the ______ correct answers Direction, size How do you quantify the price sensitivity? correct answers Percentage change in price If a small percentage increase in price is associated with a large pe...