ECON 2030 Chapter : ECON 2030 Test 1
Document Summary
Delta: delta could have used that equipment on another route if the alternative would be more profitable. If workers in the united states are the most productive in the world, why do we consume so many imported goods: cause they are cheap, productivity doesn"t matter, if we lower the opportunity cost that is good. Inverse (-) ex: price goes up, buy less or price goes down, buy more. Direct (+: demand (d, the ability and willingness to purchase a good or service regardless of price, other factors that determine your ability and willingness to purchase: Ex: price up at race track increase demand at valero. Ex: price of lens goes down increase demand of frames. Relationship (+): normal (-): inferior (+): substitute (-): compliments. Ex: price doubles, sellers want to sell more of the product, willing to supply more. Change in price (p: reservation price minimum price willing and able to receive, other factors that affect supply.
