Textbook Notes for Tsogbadral Galaabaatar

Ma(cid:396)ket- a g(cid:396)oup of (cid:271)u(cid:455)e(cid:396)s a(cid:374)d selle(cid:396)s of a pa(cid:396)ti(cid:272)ula(cid:396) p(cid:396)odu(cid

Elasticity measures how much one variable responds to changes in another variable. A numerical measure of the responsiveness of qd or qs to one of its

Chapter 4 the market forces of supply and demand. Market a group of buyers and sellers of a particular product. Competitive market many buys and seller

Chapter 6 supply, demand and government policies. Price ceiling a legal maximum on the price of a good or service, e. g. rent control. Price floor a le

 recall one of the ten principles from chapter 1: Buying more of one good leaves less income to buy other goods. Working more hours means more income

Basic idea: elasticity measures how much one variable responds to changes in another variable: one type of elasticity measures how much demand for your

Factors of production and factor markets: factors of production: the inputs used to produce goods and services. Demand for a factor of production is a

If no tradeoffs exist: if the tradeoff between the two goods is always at a constant rate, if resources are allocated efficiently. If unemployment is z