ECON 2010 Study Guide - Midterm Guide: Mira-Bhayandar Municipal Corporation, Perfect Competition, Consumer Choice

• School: CU-Boulder
• Department: Economics
• Course: ECON 2010
• Professor: Zacharyszlendak

Document Summary

Absolute advantage how much more can you do. Things workout despite people acting in their best individual interests. Bowed inward an illegal way to get around price controls (are inefficient) something people really really need but not a ton of (water, epi pens) Have no individual market power buyers and sellers are price takers carbon/sulfur tax saves the environment because it decentivizes emissions while also making money for the gov. If people expect something will be expensive then they won"t buy it. If the price of a good is expected to go up in the future, then people will buy a lot of it before the price reaches their expectations. Alternatively, if people expect the price of a good to go down then they will wait and won"t buy that good until the price falls their expectations. If something is cool clearance sales when a company has a surplus and is forced to get rid of it.