ECON 2010 Study Guide - Final Guide: Basic Income, Indifference Curve, Budget Constraint

• School: CU-Boulder
• Department: Economics
• Course: ECON 2010
• Professor: Zacharyszlendak

Document Summary

Which firms can have positive profit in the short run. If marginal utility is below 0 negative slope binding price control has an affect on market outcomes. % change in quantitya/ % change in priceb. % change in quantity/ % change in income. % change in quantity/ % change in price. % change in x/ % change in y. The two costs will be reciprocals of each other. Compensating differentials paying people differently based on job type, performance position, human capital etc. complimentary. If cped is less than 0, then the two goods are. Consumer optimal choice where the budget constraint is tangent with the indifference curve. Discrimination paying people differently based on visible charachterisitics domestic>world consumers benefit if. A good that is very sensitive to price change people can be prevented from using a good export it. Pros: cost way less than universal basic income programs and only pay the needy.