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Chapter 1 The Fundamentalsof Economics The Production Possibilitiesin a Graph A Smooth Curve Connects the Plotted Points of the Numerical Production Possibilities Economic Growth Shiftsthe PPF Outward Economies Must Choose Between Public Goods and Private Goods Investment for Future Consumption Requires Sacrificing Current Consumption Chapter 2 Markets and Governmentin a Modern Economy The Market System Relies on Supplyand Demand to Solve the Trioof Economic Problems Chapter 3 Basic Elements of Supplyand Demand Gasoline Prices Move with Demand and Supply Changes A Downward-Sloping Demand Curve Relates Quantity Demanded to Price Declining Computer Prices Have Fueled an Explosive Growth in Computer Power Increase in Demand for Automobiles Supply Curve Relates Quantity Supplied to Price Increased Supply of Automobiles Market Equilibrium Comes at the Intersection of Supply and Demand Curves Shifts in Supply or Demand Change Equilibrium Price and Quantity Shifts of and Movementsalong Curves Impact of Immigration on Wages Chapter 4 Applications of Supplyand Demand Elastic Demand Shows Large-Quantity Response to Price Change Price Elasticity of Demand Falls into Three Categories Perfectly Elasticand Inelastic Demands Slope and ElasticityAre Not the Same Thing A Simple Rule for Calculatingthe Demand Elasticity Supply Elasticity Depends uponProducer Response to Price Prices of Basic Farm ProductsHave Declined Sharply Agricultural Distress Results from Expanding Supply and Price-Inelastic Demand Crop-Restriction Programs Raise Both Price and Farm Income Gasoline Tax Falls on Both Consumer and Producer Effects of a Minimum Wage Price Controls Produce Shortages Chapter 5 Demand and Consumer Behavior The Law of DiminishingMarginal Utility Demand Curve Shifts with Changes in Income or in Other Goods’ Prices Demand for Addictive Substances by Hard-Core Users Demand for Addictive Substances by Casual Users Because of Diminishing Marginal Utility, Consumer’s Satisfact
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