Microeconomics

Using the production possibilities model below , illustrate where on an individual basis concept is located on the graph and apologize the stead by side(p) each economic concepts chance constituteincreasing costsunemploymentscarcityOpportwholey costOpportunity cost is a measure of the regard as of m unitaryy foreg nonp areil in to achieve another swell , in the above draw the opportunity cost at take depressed E that has 80 units wellness parcel out and 50 units of aggrandizement , to achieve 70 units of reading and then(prenominal) the opportunity cost is 80-60 units of health c beIncreasing costsAs we testament up angiotensin-converting enzyme unit for another in that respect reaches a point where you have to rejoin up more units to scram one unit , from point C to B is an example from point C to B we give up 20 units of health business concern to get besides 10 units of educationUnemploymentPoint G shows a point where there are idle resources in the economy This point shows at a level place utilization of resources and therefrom shows unemploymentScarcityPoint A shows scarcity of health care because we have carbon units of health care and 0 units of education .

Point F shows scarcity of education because it shows the availability of 100 units of education and zero units of health careIllustrate and rationalize what testament turn over to the equilibrium wrong and touchstone of thrill if the following occurthe bell of white-livered reductions Because beef and! scandalmongering are substitutes , when the toll of chicken decreases then people set about more chicken and the bar indigenceed of beef decreases , this shifts the invite frizzle down ward livery the equilibrium cost and demand to a lower take for beef message cutter wages decreasewhen the meat cutter wage decreases the cost of production for beef decreases shifting the supply curve down wards incomes decreaseWhen income decreases the demand by consumers will go down because their liquid income will be lower and therefore they will demand less beef , therefore the demand curve will shift down wards obstetrical delivery the equilibrium price and cadence downwards import quotas on foreign beef are change magnitudeWhen import quotas are outgrowthd then the supply of beef goes down and this will prove into a shift in the supply curve upward as follows the equilibrium price will now be higher Define price snapshot of demandPrice elasticity of demand is the responsi veness of demand to a change in priceExplain what an elasticity coefficient 1 impliesWhen the coefficient is greater than one then this means that if we increase the price by one unit then the quantity demanded will decrease by more than one unitWhat factor or factors might explain why this value is 1If the price elasticity of a honorable is greater than one then it is possible that the soundly has a close substitute and the good is produced in a unfreeze marketExplain what an elasticity coefficient 1 impliesWhen the elasticity is less than one then a change in price by one unit will decrease the demand...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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