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17 Cards in this Set
- Front
- Back
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ATC |
AVC + AFC |
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AVC |
ATC - AFC |
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AFC |
ATC - AVC |
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Change in Demand Curve |
A change that affects how much the consumer wants the good |
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Change in Supply Curve |
A change that affects the producers ability to provide that good |
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How to find the Nash Equilibrium |
Underline the best response regardless of the other player's decision. The NE is where there are two different dash marks in one box. |
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Elasticity of Demand |
(% Change in Quantity Demanded) / (% Change in Price) |
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Elasticity of Supply |
(% Change in Quantity Supplied) / (% Change in Price) |
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Inferior Good |
Increase in income results in a lower demand |
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Normal Good |
Increase in income results in a higher demand |
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Luxury Good |
As income increases, so does the % of income that is spent on luxury goods. |
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Income Elasticity of Demand |
The sensitivity of the quantity demanded in relation to the income recieved. |
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Income Elasticity Equation |
(% Change in Quantity Demanded) / (% Change in Income) |
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Short Run |
Price Changes. Hard to change how much is made, but easy to change how much is charged. |
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Long Run |
Quantity Changes. Over time, demand is more elastic, causing a change in quantity produced. |
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Returns to Scale |
The proportion of the change in inputs to the change in productivity. (EX: higher more workers = more work done) |
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Cross Elasticity |
(% Change in Quantity Demanded for Product X) / (% Change in Price for Product Y) |
