01:220:102 Study Guide - Final Guide: Longrun, Marginal Revenue, Price Ceiling

• School: Rutgers University
• Department: Economic
• Course: 01:220:102
• Professor: Douglas Blair

Document Summary

One person"s spending is another person"s income: overall spending sometimes gets out of line with economy"s productive capacity xi. Government policies can change spending: opportunity cost, comparative advantage i. Inferior goods b: changes in tastes, changes in expectations, changes in the number of consumer. When tastes change in favor of a good. Market demand for the good increases: shifts in supply curve. When the prices is expected to fall in the future. Market demand for the good decreases: changes in input prices, changes in the prices of related goods or services, changes in technology, changes in expectations, changes in the number of producers. When the price of a substitute in production falls. When the price of a complement in production rises. When the price of a substitute in production rises. When the price of a complement in production falls. When the technology used to produce the good improves. When the price is expected to fall in the future.