1- Explain the Law of Demand. What are their assumptions? What are demand curve shifters and what causes them to shift?
2- What is market equilibrium? What might keep the market from moving all the way to that equilibrium point?
3- âPrice control can be more effective in the short run than the long runâ. Explain. How could price controls affect a firmâs incentive to innovate? Explain.
4- What is price elasticity? Explain. What are various types of elasticity of demand? Explain with examples.
5- Suppose that a producer raises the price of a good from $8 to $15, and the quantity sold drops from 2500 to 400 units. Is the demand for the good is elastic or inelastic?
6- Define and explain perfect competition, monopoly and oligopoly. Why firms do price discrimination?
1- Explain the Law of Demand. What are their assumptions? What are demand curve shifters and what causes them to shift?
2- What is market equilibrium? What might keep the market from moving all the way to that equilibrium point?
3- âPrice control can be more effective in the short run than the long runâ. Explain. How could price controls affect a firmâs incentive to innovate? Explain.
4- What is price elasticity? Explain. What are various types of elasticity of demand? Explain with examples.
5- Suppose that a producer raises the price of a good from $8 to $15, and the quantity sold drops from 2500 to 400 units. Is the demand for the good is elastic or inelastic?
6- Define and explain perfect competition, monopoly and oligopoly. Why firms do price discrimination?
