ECON 2000 Chapter : Chapter 3 Notes
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If something is less expensive, we buy more, and if something is more expensive, we buy less: the law of demand: the price of a good and the quantity demanded are inversely related, all things equal. These are not the same: demand and quantity demand are different. Tabasco; another example is toothpaste centered around functionality difference commoditized commodities: the more specific we get, the more substitutes we find, you buy these inferior things because you have to. January, it becomes : people react to fear of price increase. 1,000,000 people are going to consume a lot more hamburgers. January; people buy less now different quantities: at different prices, during a specific time period, this does not mean that a seller who makes only one good must offer it at different prices. Okay, i"m going to make 10 more houses than i originally planned . If you"re a consumer, the first unit offers more satisfaction than the 8th unit of.
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Related Questions
1. In recent years China market reforms have turned toward:
A. | more free trade, allowing foreign-owned enterprises to import, export, and establish production in China. | |
B. | establishing more urban collectives. | |
C. | transforming state-owned enterprises into shareholder-owned corporations. | |
D. | reestablishing central planning. |
2. In pure capitalism, the role of government is best described as:
A. | nonexistent | |
B. | limited | |
C. | significant | |
D. | extensive |
3. In pre-reform Russia and pre-reform China:
A. | both consumer and capital goods outputs were determined by central planning. | |
B. | both consumer and capital goods outputs were determined by the market. | |
C. | capital goods output was determined by planning, but consumer goods output was determined by the market. | |
D. | consumer goods output was determined by planning, but capital goods output was determined by the market. |
4. In college, you practically existed on Spam, but now that you have an $80,000 a year job, you never want to see Spam again. We can safely conclude that you consider Spam to be
A. | a normal good. | |
B. | a complementary good. | |
C. | an inferior good. | |
D. | a luxury good. |
5. In a free market, the price system determines how society's output will be distributed by:
A. | ensuring that low-income people can buy all of the necessities for living. | |
B. | providing goods for those willing and able to pay the equilibrium price. | |
C. | ensuring that each commodity is produced by the most efficient technique. | |
D. | allowing all those who desire a commodity to buy it. |