Category: Education
Created by: Timmwilson
Number of Blossarys: 22
The decrease in total surplus of the market that is a result of a policy. Ex: price ceilings/floors; government intervention.
Defines the price at which substitute products become interchangeable. Formula: cped = % change in quantity of X demanded / % change in the price of Y. Cross price elasticity is positive for ...
The amount a consumer is willing to pay for a product – the price the consumer actually pays. Can be used to measure the utility a consumer feels.
Ability of one person or nation to produce a good at a lower opportunity cost than another person or nation. It is not possible to have a comparative advantage in both products.
Ability of one person or nation to produce a product at a lower resource cost than another person or nation. It is possible to have an absolute advantage in multiple goods when comparing to other ...
By: Timmwilson