Microeconomics (Christopher T.S. Ragan) (z-lib.org)

gasoline falls by 20 percent. For a consumer who was spending 5 percent of their income on gas, this is equivalent to a 1 percen ...

As we saw in Chapter 8 , when the price of one factor rises, a profit- maximizing firm will substitute away from the factor whos ...

The Slope of the Demand Curve We have now divided Tristan’s response to a change in the price of ice cream into a substitution e ...

The Market Demand Curve for a Factor We saw in Chapter 6 that the market demand curve for any good or service is simply the hori ...

Figure 6-3 Income and Substitution Effects of a Price Change reduction in the price to In each case, the substitution effect (sh ...

marginal product of factors of production, and thus lead to a rightward shift of the MP curve. For labour, for example, one kind ...

all three demand curves. For all three goods, a price reduction to creates a substitution effect that increases quantity demande ...

13-1 , if the product price rises from $5 to $10, the MRP curve shifts to the right (even though the MP curve does not move). Fo ...

reduction in real income leads households to purchase more of that good. Second, the good must take a large proportion of total ...

no effect on the market price of furniture. But all furniture-building firms taken together do have an effect on the equilibrium ...

Two comments are in order. First, in a case where individuals appear to buy more goods at a higher price because of the high pri ...

13. 2 The Supply of Factors When we consider the supply of any factor of production, we can consider supply at three different l ...

6.3 Consumer Surplus We have now studied two alternative methods to explain why demand curves have a negative slope, the first u ...

these levels of aggregation because the amount of factor mobility is different in each case. A given factor of production is oft ...

Figure 6-4 Moira’s Consumer Surplus on Milk Consumption Figure 6-4. Our first question to Moira is, “If you were drinking no mil ...

supply changes slowly. Each year, the stock of capital goods is diminished by the amount that becomes physically or economically ...

amount in the dark shaded area. The total value she places on these six litres is the entire shaded area. Her consumer surplus i ...

The number of people willing to work is called the labour force; the total number of hours they are willing to work is called th ...

Figure 6-5 Consumer Surplus for the Market pay for all six litres, which is $14.80, and then subtracting the $6.00 that she actu ...

Changes in real wages also play a role in determining the labour-force participation rate. A rise in the demand for labour, and ...