COMPREHENSIVE QUESTIONS AND
CORRECT ANSWERS ALREADY PASSED
⩥ Changes in Demand.
Answer: Represented by a shift of the demand curve
⩥ Total Revenue when Elastic.
Answer: Can be increased by decreasing the price
⩥ Marginal Net Benefits.
Answer: Marginal Benefit - Marginal Cost
⩥ When Demand is Elastic.
Answer: Total Revenue rises when the price increases
⩥ Accounting Profit.
Answer: Revenue - Expenses
⩥ Income Elasticity.
Answer: When less than zero, X is a normal good
, ⩥ Price Ceiling.
Answer: This is below equilibrium price
⩥ Law of Demand.
Answer: Quantity of a good consumers are willing and able to purchase
increases as the price falls
⩥ Excise Tax.
Answer: Tax on each unit of output sold. Tax revenue is collected by the
supplier
⩥ Changes in Quantity Supplied.
Answer: Represented by a movement along the supply curve
⩥ Economic Profit.
Answer: Difference between total revenue and opportunity cost.
⩥ Willingness to Pay.
Answer: Buyer will buy a good if they're WTP > Price of Good
⩥ Managerial Control Variable.