comparative advantage is related to
opportunity cost
when each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy..
rises
if a decrease in income increases the demand for a good, then the good is
an inferior good
when we move along a demand curve
all nonprice determinants of demand are held constant
when demand is elastic, a decrease in price will cause
an increase in total revenue
a decrease in demand is represented by
leftward shift of demand curve
the quantity demanded of a good is the amount that buyers are
willing and able to purchase
two goods are substitutes when a decrease in the price of one good
decreases the demand for the other good
on a downward sloping linear demand curve, total revenue reaches its maximum value at the
midpoint of the demand curve
demand is inelastic if the price elasticity of demand is
less than 1
which of the following is not a determinant of the demand for a particular good
the prices of the inputs used to produce the good
an increase in the price of a good will
decrease quantity demanded
a decrease in the price of a good will
decrease quantity supplied
The most obvious benefit of specialization and trade is that they allow us to
consume more goods than we otherwise would be able to consume
the law of demand states that, other things equal, when the price of a good..
falls, the quantity demanded for the good rises
other things equal, the demand for a good tends to be more inelastic, the..
fewer the available substitutes
the opportunity cost of an item is
what you give up to get that item
a production possibilities frontier is a straight line when
the rate of tradeoff between the two goods being produced is constant
wheat is the main input in flour, if the price of wheat decreases, then we would expect the..
supply of flour to increase
the price elasticity of demand measures how much
quantity demanded responds to change in price