- StudyBlue
- Washington
- University of Washington - Seattle Campus
- Economics
- Economics 200
- Gilles
- some basic econ ideas

Marianne F.

opportunity cost

to get the opportunity cost for something, you divide the other side by your side to get the value for your side. and then you compare vertically.

price elasticity of demand equation

percent change in quantity/ percent change in price

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percent change in quantity

(quantity2-quantity1)/2

for price elasticity of demand, if e > 1, then demand is (elastic/inelastic)?

demand elastic

for price elasticity of demand, if e < 1, then demand is (elastic/inelastic)

demand inelastic

meet point method

percent change in quantity/percent change in price

quantity: (q2-q1)/((q1+q2)/2)

more substitutes, then more elastic/inelastic?

elastic

P goes up, Total Revenue goes up

inelastic

p goes up, total revenue goes down

elastic

income elasticity

percent change in q/percent change in income

if negative = inferior

if positive = normal

under normal, if bigger than 1, luxury, if smaller than 1, necessity

cross price elasticity

percent change in q of x / percent change in price of y

if postive, substitutes, if negative, complements

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which one has more tax burden? elastic or inelastic?

inelastic

price ceiling

shortage

price floor

surplus

producer surplus

total revenue - total cost

if mv>mc, then...

produce mo' shit!

total surplus

value to buyers - cost to sellers

or

consumer surplus + producer surplus + government revenue

revenue from tax

t * q

if demand inelastic, DWL will be

SMALLER

if demand elastic, DWL will be

BIG

A-B, elasticity and p to tr direction?

elastic and opposite, p down, tr up

B-C, elasticity and p to tr direction?

inelastic and same, p down, tr down

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