What does the Law of Supply indicate?
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As the price of a good increases, the quantity supplied increases, and vice versa.
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What does the Law of Supply indicate?
As the price of a good increases, the quantity supplied increases, and vice versa.
What is Utility in consumer behavior?
Satisfaction or pleasure derived from consuming goods and services.
What is Marginal Utility?
The additional satisfaction gained from consuming one more unit of a good or service.
What does the Law of Demand state?
As the price of a good decreases, the quantity demanded increases, and vice versa.
What is Price Elasticity of Demand?
Measures how much the quantity demanded responds to a change in price.
What distinguishes Short-Run Costs from Long-Run Costs?
In the short-run, at least one input is fixed; in the long-run, all inputs can be varied.
What insights can Microeconomics provide about Consumer Choices?
Insights into how consumers make decisions can inform marketing and product development.
What does Income Elasticity of Demand measure?
How quantity demanded changes as consumer income changes.
What are Negative Externalities?
Costs to third parties, such as pollution.
What is a Budget Constraint?
The limit on the consumption choices of individuals based on their income and the prices of goods.
How does Microeconomics apply to Policy Making?
Understanding consumer behavior and market dynamics aids in crafting effective economic policies.
What characterizes Elastic Demand?
Quantity demanded changes significantly with price changes.
What are Externalities?
Costs or benefits incurred by third parties not involved in a transaction.
What is Equilibrium in microeconomics?
The point where the quantity demanded equals the quantity supplied.
What is an Oligopoly?
A market structure with few firms, where products may be identical or differentiated, and firms make interdependent decisions.
What is Inelastic Demand?
Quantity demanded changes little with price changes.
What are Positive Externalities?
Benefits to third parties, such as those from education.
What is Microeconomics?
The branch of economics that studies individual agents and markets, focusing on the behavior of consumers and firms.
What is a Production Function?
The relationship between inputs used in production and the resulting output.
How do firms use Microeconomic principles?
To optimize pricing, production, and marketing strategies.
What are the characteristics of Perfect Competition?
Many firms, identical products, free entry and exit.
Why is Microeconomics important?
It provides essential tools for analyzing individual market behavior and decision-making processes.
What defines a Monopoly?
A single firm dominates the market, offering a unique product with high barriers to entry.
What characterizes Monopolistic Competition?
Many firms offering differentiated products with some control over prices.
What are Public Goods?
Goods that are non-excludable and non-rivalrous, like national defense.
What is Asymmetric Information?
Situations where one party has more or better information than the other, such as in the used car market.
