______________ can model a change in conditions which affects many, if not all, markets in the economy
Fill in the blank(s) with the appropriate word(s).
Answer: General Equilibrium
You might also like to view...
See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the cross-price elasticity of Rock and Roll Trivia programs and diskettes?
A) -1/90 B) 0 C) 1/90 D) 1 E) none of the above
McDonald's introduced the "Big Mac" in 1968 and it turned out to be a hit, but the "Arch Deluxe" introduced in 1996 was not. The success or failure of a product in the market system is determined by:
A. Capitalism and entrepreneurship B. Specialization and exchange C. Consumer sovereignty and dollar votes D. Capital goods and roundabout production
Every Friday night Elizabeth either goes bowling or goes to the movies. Because the price of bowling went up, Elizabeth now sees more movies. Elizabeth's behavior would be best described as a change in which determinant of demand?
a. Price of complementary goods b. Expectations c. Income d. Number of buyers e. Price of substitute goods
Utility theory assumes that marginal utility of a good
a. increases as an individual consumes more of the good b. decreases as an individual consumes more of the good c. is greater than total utility as long as total utility is greater than zero d. is constant as long as the individual derives utility from the good e. is greater than total utility as long as marginal utility is greater than zero