Tuesday, March 5, 2019
Week 1 Knowledge Check
Knowledge Check Week 1The somatic presented below is not meant to be a comprehensive list of in all you need to know in the content bea. Rather it is a starting time point for building your knowledge and skills. Additional study materials are recommended in each area below to help you master the material. Personalized subject field Guide Results Score 12 / 12 Concepts Mastery Questions determine Decisions one hundred% Market Systems 100% Market Equilibrium 100% Concept Pricing Decisions Mastery 100% Questions 1 . Revenue increases when A. roducer surplus increases Correct manufacturing business surplus is the difference between the minimum value the producer is will to receive and what they actually receive. The surplus is their profit, and the larger the surplus, the greater their profit on the nigh(a). When it decreases, the producer receives a price closer to the minimum acceptable. The consumer surplus measures what the consumer is ordain to pay and that prices differ ence from the securities industry price. The closer to the market price, the higher the consumer surplus, as consumers are spending ess than they are willing to, and the less(prenominal) spent, the lower the revenue will be for the good. Materials Producer Surplus 2 . An increase in the price of an inelastic goods C. increases revenues Correct nonresilient goods are necessities that consumers continue to purchase even when the price increases. This increases the revenue, as more is gainful for each good. The percentage budge in price increases faster than the change in quantity, which may remain constant. When more is paid for a good or a service, revenue increases. Materials terms Elasticity and the Total-Revenue Curve Inelastic Demand 3 . Price elasticity of Demand increases whe C. people endure more price sensitive over time Correct Price elasticity of demand measures the percentage change in quantity demanded split up by the percentage change in price. Price elastic ity is both inelastic or elastic. As the price elasticity of demand coefficient rises, price elasticity becomes more elastic. A low price elasticity coefficient relates to an occurrence that has very few substitutes, which causes people to be less sensitive to a change in price, such as in gasoline or medicine (inelastic demand, Ed
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