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#6-revisiting-demand-function #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4
An important thing to notice is that the pure substitution effect must always be in the direction of purchasing more when the price falls and purchasing less when the price rises. This is because of the diminishing marginal rate of substitution, or the convexity of the indifference curve.

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6. REVISITING THE CONSUMER’S DEMAND FUNCTION
income effect. Exhibit 16. Substitution and Income Effects for a Normal Good Note: Substitution effect (Q a to Q b ) and the income effect (Q b to Q c ) of a decrease in the price of a normal good. <span>An important thing to notice is that the pure substitution effect must always be in the direction of purchasing more when the price falls and purchasing less when the price rises. This is because of the diminishing marginal rate of substitution, or the convexity of the indifference curve. Look again at Exhibit 16. Note that the substitution effect is the result of changing from budget constraint 1 to budget constraint 3—or moving the budget constraint along the original




Flashcard 1434966953228

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#6-revisiting-demand-function #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4
Question
Pure substitution effect must always be in the direction of purchasing more when the price falls and purchasing less when the price rises.

This is because of the
[...], or
[...]
Answer
diminishing marginal rate of substitution

the convexity of the indifference curve.


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An important thing to notice is that the pure substitution effect must always be in the direction of purchasing more when the price falls and purchasing less when the price rises. This is because of the diminishing marginal rate of substitution, or the convexity of the indifference curve.

Original toplevel document

6. REVISITING THE CONSUMER’S DEMAND FUNCTION
income effect. Exhibit 16. Substitution and Income Effects for a Normal Good Note: Substitution effect (Q a to Q b ) and the income effect (Q b to Q c ) of a decrease in the price of a normal good. <span>An important thing to notice is that the pure substitution effect must always be in the direction of purchasing more when the price falls and purchasing less when the price rises. This is because of the diminishing marginal rate of substitution, or the convexity of the indifference curve. Look again at Exhibit 16. Note that the substitution effect is the result of changing from budget constraint 1 to budget constraint 3—or moving the budget constraint along the original







Flashcard 1434972196108



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#6-revisiting-demand-function #cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4
Question
Name the effects
Answer
Substiution

Income


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#6-revisiting-demand-function #cfa #cfa-level-1 #economics #has-images #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #study-session-4
Note that the substitution effect is the result of changing from budget constraint 1 to budget constraint 3—or moving the budget constraint along the original indifference curve, while maintaining tangency. Note that in the process, the budget constraint becomes less steep, just as the marginal rate of substitution decreases.

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Flashcard 1434975341836

Tags
#italian #italian-grammar
Question
The verb mood we use most in speaking and writing is the [...].
Answer
indicative mood


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The verb mood we use most in speaking and writing is the indicative mood. Within this mood is a full range of tenses: present mangio ‘I eat’; past ho mangiato ‘I have eaten’; future mangerò ‘I will eat’; etc. The verb mood used to express uncertainty is the

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Flashcard 1434977701132

Tags
#italian #italian-grammar
Question
The verb mood used to express uncertainty is the [...], which has, as the indicative, a full range of tenses.
Answer
subjunctive


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e use most in speaking and writing is the indicative mood. Within this mood is a full range of tenses: present mangio ‘I eat’; past ho mangiato ‘I have eaten’; future mangerò ‘I will eat’; etc. The verb mood used to express uncertainty is the <span>subjunctive, which also has a full range of tenses. See Subjunctive.<span><body><html>

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Flashcard 1434980060428

Tags
#italian #italian-grammar
Question
Within the indicative mood there is a full range of tenses: [...] past, ho mangiato ‘I have eaten’; future, mangerò ‘I will eat’; etc.
Answer
present (mangio, ‘I eat’)


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The verb mood we use most in speaking and writing is the indicative mood. Within this mood is a full range of tenses: present mangio ‘I eat’; past ho mangiato ‘I have eaten’; future mangerò ‘I will eat’; etc. The verb mood used to express uncertainty is the subjunctive, which also has a full range of tenses. S

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Flashcard 1434982419724

Tags
#italian #italian-grammar
Question
An [...], whether noun or pronoun, is one that is indirectly affected by the action or event.
Answer
indirect object


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An indirect object, whether noun or pronoun, is one that is indirectly affected by the action or event. An indirect object can be found with a transitive verb, which already has one direct object: ho mand

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Flashcard 1434984779020

Tags
#italian #italian-grammar
Question
An indirect object can be found with a [...], which already has one direct object:
Answer
transitive verb

ho mandato delle cartoline ai miei amici ‘I sent some postcards to my friends’.


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An indirect object, whether noun or pronoun, is one that is indirectly affected by the action or event. An indirect object can be found with a transitive verb, which already has one direct object: ho mandato delle cartoline ai miei amici ‘I sent some postcards to my friends’. Or it can be used with an intransitive verb, which does not take a

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Flashcard 1434987138316

Tags
#italian #italian-grammar
Question
An [...] can be used with an intransitive verb, which does not take a direct object, in which case it may be found together with a preposition such as a, da: Marco telefonava a sua madre ogni sera ‘Marco used to phone his mother every evening’.
Answer
Indirect Object


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ronoun, is one that is indirectly affected by the action or event. An indirect object can be found with a transitive verb, which already has one direct object: ho mandato delle cartoline ai miei amici ‘I sent some postcards to my friends’. Or <span>it can be used with an intransitive verb, which does not take a direct object, in which case it may be found together with a preposition such as a, da: Marco telefonava a sua madre ogni se

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Flashcard 1434989497612

Tags
#italian #italian-grammar
Question
Number is the distinction between [...].
Answer
singular and plural


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Number is the distinction between singular and plural. Verb forms alter according to the number of the subject: il ragazzo nuota ‘the boy swims’; i ragazzi nuotano ‘the boys swim’.

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Flashcard 1434991856908

Tags
#italian #italian-grammar
Question
Verb forms alter according to the [...] of the subject: il ragazzo nuota ‘the boy swims’; i ragazzi nuotano ‘the boys swim’.
Answer
number


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Number is the distinction between singular and plural. Verb forms alter according to the number of the subject: il ragazzo nuota ‘the boy swims’; i ragazzi nuotano ‘the boys swim’.

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Flashcard 1434994216204

Tags
#rules-of-formulating-knowledge
Question

Before you proceed with memorizing individual facts and rules, you need to [...] .

Answer
build an overall picture of the learned knowledge


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2. Learn before you memorize
Before you proceed with memorizing individual facts and rules, you need to build an overall picture of the learned knowledge . Only when individual pieces fit to build a single coherent structure, will you be able to dramatically reduce the learning time. This is closely related to the problem comprehension mentioned in Rule 1: Do not learn if you do not understand. A single sep







Flashcard 1434996575500

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#rules-of-formulating-knowledge
Question
rule no 2 [...] before you [...]
Answer
Learn

memorize

Only when individual pieces fit to build a single coherent structure you can memorize


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2. Learn before you memorize
Before you proceed with memorizing individual facts and rules, you need to build an overall picture of the learned knowledge . Only when individual pieces fit to build a single coherent structure, will you be able to dramatically reduce the learning time. This is closely related to the problem comprehension mentioned in Rule 1: Do not learn if you do not understand. A single sep







Flashcard 1434998934796

Question

simple material is easy to [...]

Answer
remember.


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4. minimum information principle
The material you learn must be formulated in as simple way as it is Simple is easy By definition, simple material is easy to remember. This comes from the fact that its simplicity makes is easy for the brain to process it always in the same way. Imagine a labyrinth. When making a repetition of a piece of material, your







Flashcard 1435001294092

Question
Rule no 4 [...] principle
Answer
Minimum information

Simple is easy baby!


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4. minimum information principle
The material you learn must be formulated in as simple way as it is Simple is easy By definition, simple material is easy to remember. This comes from the fact that its simplicity makes is easy for the brain to process it always in the same way. Imagine a labyr







Flashcard 1435003653388

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#algebra-baldor
Question
El Signo de Raíz es √ y es llamado signo [...],
Answer
radical


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El Signo de Raíz es v 7 llamado signo radical, y bajo este signo se co loca la cantidad a la cual se le extrae la raíz. Así, \T á equivale a raíz cuadrada de a, o sea, la cantidad que elevada al cuadrado reproduce la can tidad a; W

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Flashcard 1435006012684

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#algebra-baldor
Question
Una misma letra puede representar distintos valores diferenciándolos por medio de [...]
Answer
comillas; por ejemplo: a a "


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Una misma letra puede representar distintos valores diferenciándolos por medio de comillas; por ejemplo: a a " , a'", que se leen a prima, a se gunda, a tercera, o también por medio de subíndices; por ejemplo: alt a2, (h, que se leen a subuno, a subdos, a subtres.

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Flashcard 1435008371980

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#algebra-baldor
Question
Cantidades aritméticas son las que expresan [...] representado por los números, pero no nos dicen el sentido o valor relativo de las cantidades.
Answer
solamente el valor abso luto de las cantidades


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Cantidades aritméticas son las que expresan solamente el valor abso luto de las cantidades representado por los números, pero no nos dicen el sentido o valor relativo de las cantidades.

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Flashcard 1435009944844

Tags
#algebra-baldor
Question
El Signo de la Elevación a Potencia es [...].
Answer
el exponente


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El Signo de la Elevación a Potencia es el exponente, que es un núm ero pequeño colocado arriba y a la derecha de una cantidad, el cual indica las veces que dicha , cantidad, llamada base, se toma como factor.

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Flashcard 1435011517708

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
For most goods and services, [...] is much more elastic than the short-run demand.
Answer
the long-run demand


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For most goods and services, the long-run demand is much more elastic than the short-run demand. The reason is that if price were to change for, say, gasoline, we probably would not be able to respond quickly with a significant reduct

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4.1. Own-Price Elasticity of Demand
the price of housing were to rise significantly, however, most households would try to find a way to reduce the quantity they buy, at least in the long run. This example leads to another characteristic regarding price elasticity. <span>For most goods and services, the long-run demand is much more elastic than the short-run demand. The reason is that if price were to change for, say, gasoline, we probably would not be able to respond quickly with a significant reduction in the quantity we consume. In the short run, we tend to be locked into modes of transportation, housing and employment location, and so on. The longer the adjustment time, however, the greater the degree to which a household could adjust to the change in price. Hence, for most goods, long-run elasticity of demand is greater than short-run elasticity. Durable goods, however, tend to behave in the opposite way. If the price of washing machines were to fall, people might react quickly because they have an old machine that they know will need to be replaced fairly soon anyway. So when price falls, they might decide to go ahead and make the purchase. If the price of washing machines were to stay low forever, however, it is unlikely that a typical consumer would buy all that many more machines over a lifetime. Certainly, whether the good or service is seen to be non-discretionary or discretionary would help determine its sensitivity to a price change. Faced with the same percenta







Flashcard 1435015449868

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#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
we can interpret the [...] as the lowest price sellers would accept for each quantity.
Answer
marginal cost curve


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we can interpret the marginal cost curve as the lowest price sellers would accept for each quantity, which basically means the marginal cost curve is the supply curve of any competitive seller.

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3.10. Producer Surplus—Revenue minus Variable Cost
atively, a producer should be willing to sell that unit for a price that is higher than its marginal cost because it would contribute something toward fixed cost and profit, and obviously the higher the price the better for the seller. Hence, <span>we can interpret the marginal cost curve as the lowest price sellers would accept for each quantity, which basically means the marginal cost curve is the supply curve of any competitive seller. The market supply curve is simply the aggregation of all sellers’ individual supply curves, as we showed in section 3.5. Marginal cost curves are likely to have positive sl







Flashcard 1435017809164

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
The marginal cost curve is = to [...] of any competitive seller.
Answer
the supply curve


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we can interpret the marginal cost curve as the lowest price sellers would accept for each quantity, which basically means the marginal cost curve is the supply curve of any competitive seller.

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3.10. Producer Surplus—Revenue minus Variable Cost
atively, a producer should be willing to sell that unit for a price that is higher than its marginal cost because it would contribute something toward fixed cost and profit, and obviously the higher the price the better for the seller. Hence, <span>we can interpret the marginal cost curve as the lowest price sellers would accept for each quantity, which basically means the marginal cost curve is the supply curve of any competitive seller. The market supply curve is simply the aggregation of all sellers’ individual supply curves, as we showed in section 3.5. Marginal cost curves are likely to have positive sl







Flashcard 1435020168460

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question

An individual seller’s monthly supply of downloadable e-books is given by the equation

Qseb=−64.5+37.5Peb−7.5W

where Qseb is number of e-books supplied, Peb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market.

  1. Determine the market aggregate supply function.

Answer

Aggregating supply functions means summing up the quantity supplied by all sellers. In this case, there are eight identical sellers, so multiply the individual seller’s supply function by eight:

Qseb=8(−64.5+37.5Peb−7.5W)=−516+300Peb−60W


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Aggregating Supply Functions An individual seller’s monthly supply of downloadable e-books is given by the equation Qseb=−64.5+37.5Peb−7.5W where Qseb is number of e-books supplied, P eb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market. Determine the market aggregate supply function. Determine the inverse market supply function. Determine the slope of the aggregate market supply curve. Solution to 1:

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3.5. Aggregating the Demand and Supply Functions
5Q eb Solution to 3: The slope of the market demand curve is the coefficient on Q eb in the inverse demand function, which is −0.0025. EXAMPLE 5 <span>Aggregating Supply Functions An individual seller’s monthly supply of downloadable e-books is given by the equation Qseb=−64.5+37.5Peb−7.5W where Qseb is number of e-books supplied, P eb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market. Determine the market aggregate supply function. Determine the inverse market supply function. Determine the slope of the aggregate market supply curve. Solution to 1: Aggregating supply functions means summing up the quantity supplied by all sellers. In this case, there are eight identical sellers, so multiply the individual seller’s supply function by eight: Qseb=8(−64.5+37.5Peb−7.5W)=−516+300Peb−60W Solution to 2: Holding W constant at a value of €10, insert that value into the aggregate supply function and then solve for P eb to find the inverse supply function: Q eb = –1,116 + 300P eb Inverting, P eb = 3.72 + 0.0033Q eb Solution to 3: The slope of the supply curve is the coefficient on Q eb in the inverse supply function, which is 0.0033. <span><body><html>







Flashcard 1435022527756

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question

An individual seller’s monthly supply of downloadable e-books is given by the equation

Qseb=−64.5+37.5Peb−7.5W

where Qseb is number of e-books supplied, Peb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market.

Determine the inverse market supply function.

Answer

Holding W constant at a value of €10, insert that value into the aggregate supply function and then solve for Peb to find the inverse supply function:

Qeb = –1,116 + 300Peb

Inverting, Peb = 3.72 + 0.0033Qeb


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Aggregating Supply Functions An individual seller’s monthly supply of downloadable e-books is given by the equation Qseb=−64.5+37.5Peb−7.5W where Qseb is number of e-books supplied, P eb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market. Determine the market aggregate supply function. Determine the inverse market supply function. Determine the slope of the aggregate market supply curve. Solution to 1:

Original toplevel document

3.5. Aggregating the Demand and Supply Functions
5Q eb Solution to 3: The slope of the market demand curve is the coefficient on Q eb in the inverse demand function, which is −0.0025. EXAMPLE 5 <span>Aggregating Supply Functions An individual seller’s monthly supply of downloadable e-books is given by the equation Qseb=−64.5+37.5Peb−7.5W where Qseb is number of e-books supplied, P eb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market. Determine the market aggregate supply function. Determine the inverse market supply function. Determine the slope of the aggregate market supply curve. Solution to 1: Aggregating supply functions means summing up the quantity supplied by all sellers. In this case, there are eight identical sellers, so multiply the individual seller’s supply function by eight: Qseb=8(−64.5+37.5Peb−7.5W)=−516+300Peb−60W Solution to 2: Holding W constant at a value of €10, insert that value into the aggregate supply function and then solve for P eb to find the inverse supply function: Q eb = –1,116 + 300P eb Inverting, P eb = 3.72 + 0.0033Q eb Solution to 3: The slope of the supply curve is the coefficient on Q eb in the inverse supply function, which is 0.0033. <span><body><html>







Flashcard 1435024362764

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question

An individual seller’s monthly supply of downloadable e-books is given by the equation

Qseb=−64.5+37.5Peb−7.5W

where Qseb is number of e-books supplied, Peb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market.


Determine the slope of the aggregate market supply curve.

Answer

The slope of the supply curve is the coefficient on Qeb in the inverse supply function, which is 0.0033.


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Aggregating Supply Functions An individual seller’s monthly supply of downloadable e-books is given by the equation Qseb=−64.5+37.5Peb−7.5W where Qseb is number of e-books supplied, P eb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market. Determine the market aggregate supply function. Determine the inverse market supply function. Determine the slope of the aggregate market supply curve. Solution to 1:

Original toplevel document

3.5. Aggregating the Demand and Supply Functions
5Q eb Solution to 3: The slope of the market demand curve is the coefficient on Q eb in the inverse demand function, which is −0.0025. EXAMPLE 5 <span>Aggregating Supply Functions An individual seller’s monthly supply of downloadable e-books is given by the equation Qseb=−64.5+37.5Peb−7.5W where Qseb is number of e-books supplied, P eb is the price of e-books in euros, and W is the wage rate in euros paid by e-book sellers to laborers. Assume that the price of e-books is €10.68 and wage is €10. The supply side of the market consists of a total of eight identical sellers in this competitive market. Determine the market aggregate supply function. Determine the inverse market supply function. Determine the slope of the aggregate market supply curve. Solution to 1: Aggregating supply functions means summing up the quantity supplied by all sellers. In this case, there are eight identical sellers, so multiply the individual seller’s supply function by eight: Qseb=8(−64.5+37.5Peb−7.5W)=−516+300Peb−60W Solution to 2: Holding W constant at a value of €10, insert that value into the aggregate supply function and then solve for P eb to find the inverse supply function: Q eb = –1,116 + 300P eb Inverting, P eb = 3.72 + 0.0033Q eb Solution to 3: The slope of the supply curve is the coefficient on Q eb in the inverse supply function, which is 0.0033. <span><body><html>







Flashcard 1435026197772

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
If the demand curve is steeper, [...] capture more of the surplus.
Answer
consumers


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Parent (intermediate) annotation

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If the supply curve is steeper than the demand curve, more of the surplus is being captured by producers. If the demand curve is steeper, consumers capture more of the surplus.

Original toplevel document

3.11. Total Surplus—Total Value minus Total Variable Cost
n they actually received. The total value to buyers was greater than the total variable cost to sellers. The difference between those two values is called total surplus , and it is made up of the sum of consumer surplus and producer surplus. <span>Note that the way the total surplus is divided between consumers and producers depends on the steepness of the demand and supply curves. If the supply curve is steeper than the demand curve, more of the surplus is being captured by producers. If the demand curve is steeper, consumers capture more of the surplus. In a fundamental sense, total surplus is a measure of society’s gain from the voluntary exchange of goods and services. Whenever total surplus increases, society gains. An







Flashcard 1435034848524

Question
designing
Answer
[default - edit me]


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Design Your Habits | Forte Labs Online
al skills of high performance in any area, allowing you to preserve your time, energy, and willpower. In this class, you will learn the best principles and tools for designing better habits and then use them to complete a hands-on project: <span>designing a sustainable daily habit to improve your productivity, creativity, health, or wellbeing. In my work with Forte Labs, I've helped thousands of people from organizations like Genentec







Flashcard 1435035897100

Question
sustainable
Answer
[default - edit me]


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Design Your Habits | Forte Labs Online
high performance in any area, allowing you to preserve your time, energy, and willpower. In this class, you will learn the best principles and tools for designing better habits and then use them to complete a hands-on project: designing a <span>sustainable daily habit to improve your productivity, creativity, health, or wellbeing. In my work with Forte Labs, I've helped thousands of people from organizations like Genentech, Toyota, and







Carefully chosen courses, taught by nationally recognized professors, are at the core of our advanced degree programs. And, as a student interested in pursuing one of these challenging yet rewarding degrees, you’ll be pleased to know CSU-Pueblo offers so many options for graduate work.

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Higher Learning for Higher Achievement <span>Carefully chosen courses, taught by nationally recognized professors, are at the core of our advanced degree programs. And, as a student interested in pursuing one of these challenging yet rewarding degrees, you’ll be pleased to know CSU-Pueblo offers so many options for graduate work. The mission of Graduate Studies is to promote and support academic excellence in graduate education and programs that prepare students for careers with impact to regional, state




Flashcard 1435053198604

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4 #summary
Question
The relationship among own-price elasticity of demand, changes in price, and changes in total expenditure is as follows:

If demand is elastic, a reduction in price results in an
[...];

if demand is inelastic, a reduction in price results in
[...] ;

if demand is unitary elastic, a change in price
[...]
Answer
increase in total expenditure

a decrease in total expenditure

leaves total expenditure unchanged.


statusnot learnedmeasured difficulty37% [default]last interval [days]               
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Parent (intermediate) annotation

Open it
The relationship among own-price elasticity of demand, changes in price, and changes in total expenditure is as follows: If demand is elastic, a reduction in price results in an increase in total expenditure; if demand is inelastic, a reduction in price results in a decrease in total expenditure; if demand is unitary elastic, a change in price leaves total expenditure unchanged.</spa

Original toplevel document

SUMMARY
ood causes an increase in demand for the other good—are called complements. Goods with positive cross-price elasticity of demand—a drop in the price of one good causes a decrease in demand for the other—are called substitutes. <span>The relationship among own-price elasticity of demand, changes in price, and changes in total expenditure is as follows: If demand is elastic, a reduction in price results in an increase in total expenditure; if demand is inelastic, a reduction in price results in a decrease in total expenditure; if demand is unitary elastic, a change in price leaves total expenditure unchanged. <span><body><html>