Chapter 5 Economics Test

the willingness and the ability to supplytwo factors of supply
the total change in production that results from hiring one more employeemarginal product
add fixed costs and variable costshow to calculate total cost
change in total cost/change in total producthow to calculate marginal cost
input costs, labor productivity, government action, technological advances, number of producers, producer expectations6 factors that cause shifts in supply
pricefactor that causes a shift in quantity supplied
elasticity of supplyhow responsive producers are to changes in price
price times quantityhow to calculate total revenue
marginal cost and marginal revenueprofit-maximizing output is where what two things are equal
total revenue – total costshow to calculate profit
law of diminishing marginal utilitylaw that explains the shape of the demand curve
normal goodsmore is demanded when income increases
income, market size, consumer tastes, consumer expectations, substitute goods, complimentary goods6 factors that shift demand curves
([original quantity – new quantity] / original quantity x100)/([original price – new price] / original price x 100)how to calculate elasticity of demand
>1 elastic, <1 inelastic, =1 unit elasticelasticity of demand percentages