Micro Questions

Question	Answer
What is the equation for XeD?	PED = % change in Quantity Demanded / % change in Price
What determines supply elasticity?	1. Can labor and capital be easily changed 2.Spare Production Capacity Available 3.Inventories 4. Time Frame 5.Artificial Limits
What are Inferior Goods?	Demand fall as income rises
What is Utility?	Measure of satisfaction, total satisfaction received by a consumer from consuming a good or service
What is a merger?	When the owners of two business agree to put their firms together to make one business
What are Economies of Scale?	When the average cost of a product falls are production rises.
What are fixed costs?	These do not vary directly with the level of output
What is a normal good?	Demand rises as income does
What determines price elasticity of demand?	1. Close Substitutes 2.Luxury or Necessity 3.Percent of Income spent on good 4.Habit Forming 5. Time Period
What are Substitutes?	Increase in price of one product will increase demand of rival

Resource summary

	Created by 2016: Alejandro 7561 about 9 years ago