Thursday, January 29, 2015

Graph Notes

Graph Notes 


Equilibrium- Supply curve and demand curve intersect. Point where all resources are being use efficiently

Shortage- QD>QS
Surplus- QS>QD

Price Floor- Government imposed price limit, on how low a price can be charged for a product
 
Price ceiling- Government imposed limit on how high a price is charged for a product. 

Fixed Cost- A cost that cannot change. ex rent, insurance, mortgage

Variable Cost- Cost that fluctuate. Ex Gas, phone 

Marginal Cost- Cost of producing one more unit of a good. 
New TC- Old TC

 

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