Term
| How does long run supply appear on a supply curve? |
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Definition
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Term
| What is the Elasticity of long run supply? |
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Definition
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Term
| What are Bumper Crops in Agriculture? |
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Definition
| An unexpectedly high yield of a particular crop. |
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Term
| What kind of demand do farm products have? |
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Definition
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Term
| What does an inelastic supply curve look like? |
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Definition
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Term
| What does an elastic supply curve look like? |
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Definition
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Term
| What does a unit elastic supply curve look like? |
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Definition
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Term
| Perfectly inelastic supply cannot do what? |
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Definition
| React to changes in demand |
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Term
| What happens to a farmer's revenue when they have bumper crops? |
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Definition
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Term
| All producers want to maximize what? |
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Definition
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Term
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Definition
Taxes on the consumption or sale of specific goods.
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Term
| What are examples of price elasticities of demand that are very inelastic? |
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Definition
Cigarettes, .25
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Gasoline, .6
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Liquors, .7
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Term
| Inelastic goods due to Excise Taxes must do what? |
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Definition
| Increase their prices significantly, while they lower their quantity only a minor amount, to accommodate for the Excise Tax. |
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Term
| The more substitutes there are for a good, the more what is that good? |
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Definition
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Term
| Elastic goods if under Excise Taxes must do what? |
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Definition
| Increase their prices slightly, while decreasing quantity quite significantly , to accommodate for the Excise Tax. |
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Term
| What is an Excise Tax Burden? |
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Definition
The percentage of an excise tax borne by consumers or producers.
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Excise Tax's effect on price increase of goods and how it effects consumers.
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Excise Taxes' effect on cost of production, and how it decreases the quantity a supplier can produce.
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Term
| Excise Taxes do what to Supply and Price to a rather inelastic demand curve? |
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Definition
| Increases price significantly by adding tax to prices, and decreases quantity supplied due to higher production costs. |
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Term
| When demand is inelastic, who bears the greater excise tax burden? |
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Definition
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Term
| When demand is elastic, who bears the greater excise tax burden? |
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Definition
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Term
| Not all of the taxes can be added to what? |
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Definition
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Term
Which is more volatile?
Gas prices or Car Prices? |
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Definition
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Term
| Because there are very few substitutes for gasoline, what is it's elasticity type? |
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Definition
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Term
| The supply of gasoline depends on what? |
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Definition
| The availability of crude oil |
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Term
| What does the availability of crude oil dependent on? |
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Definition
| Vulnerability to profound unpredictable supply interruptions |
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Term
| Cars have many substitutes, which means they have what elasticity type? |
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Definition
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Term
| Supply of cars depends on what? |
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Definition
| Resources that are rather reliably available |
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Term
| What is utility in economics? |
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Definition
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Term
| How do consumers react to combinations of the same utility level? |
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Definition
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Term
| What is an indifference curve? |
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Definition
| Curve that represents all combinations of two goods. equally preferred by a consumer. |
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