Economics 1021A/B Lecture Notes - Economic Surplus, Demand Curve, Marginal Cost
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ECON 1021A/B Full Course Notes
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Market price: people who can afford an item, and who want to buy it. Command: someone says this resource will be used for this purpose. Contest: the participants are rewarded for their hard work and effort, prizes to the winner. Sharing equally: resources getting shared equally. Lottery: randomly chosen who gets the resources. Personal characteristics: have to have certain characteristics in order to get the resources/job. Force: can be used in a positive or negative way. Value is what we get, price is what we pay. The value of one more unit of a good or service is its marginal benefit. We measure value as the maximum price that a person is willing to pay. A demand curve is a marginal benefit curve. The relationship between the price of a good and the quantity demanded by one person is called individual demand.