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Terms in this set (8)
Equilibrium
The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods
demanded.
Excess Demand
This is the point at which the demand and supply curves in the market intersect.
Excess Supply
Excess demand is created when price is set below the equilibrium price. Because the price is so low, too many consumers
want the good while producers are not making enough of it. In this situation, at price P1, the quantity of goods
demanded by consumers at th is price is Q2.
Market Price
A situation in which the quantity of a good or service supplied is more than the quantity demanded, and the price is
above the equilibrium level determined by supply and demand.
Price
In economics, market price is the economic price for which a good or service is offered in th emarketplace.It is of interest
mainly in thestudy of microeconomics. Market value and
market price are equal only under conditions of market
efficiency, equilibrium, and rational expectations.
The amount of money expected, required, or given in payment for something
Rationing is the controlled distribution of scarce resources, goods, or services, or an artificial restriction of demand.
Rationing
Rationing controls the size of the ration, which is one's allowed portion of the resources
being distributed on a particular
day or at a particular time.
Relative Prices
Price of a commodity such as a good or service in terms of another; i.e., the ratio of two prices.
Substation Effect
The
substitution effect is one component of the effect of a change in the price of a good upon the amount of that good
demanded by a consumer, the other being the income effect.
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Would each of the following business practices be legal under antitrust law? Explain. you require purchasers to buy all of their office supplies from you. A. You have a parent for a superior fax machine and therefore are the only person able to sell that type of fax machine. In order to buy your fax machine, you require the purchaser to buy a service contract from you (even though other firms provide excellent service for your machine). B. You have invented a new type of correction fluid that does an amazing job covering up mistakes made on paper forms. In order to buy your correction fluid, C. You own a car dealership and plan to buy the dealership across the street and merge the two companies. There are several other car dealerships in town.
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In thr 1990s many people speculated that the economy had been transformed by new technologies. Paul A. Volcker, former chairman of the U.S. Federal Reserve Bank, described it this way: "The speed of communication, the speed of information transfer, the cheapness of communication, the ease of moving things around the world are a diffrence in kind as well as degree." Do you think that business cycles are inevitable? Can they ever be eliminated entirely? Explain your answer.
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What is the probability of finding a z value between 0 and 0.76?
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A machine is set to produce tennis balls so the mean bounce is 36 inches when the ball is dropped from a platform of a certain height. The production supervisor suspects that the mean bounce has changed and is less than 36 inches. As an experiment, a sample of 12 balls was dropped from the platform and the mean height of the bounce was 35.5 inches, with a standard deviation of 0.9 inches. At the .05 significance level, can the supervisor conclude that the mean bounce height is less than 36 inches?
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