The Market Forces of Supply and Demand - …：供给与需求的市场力量—….pptVIP

Question from last year’s final … Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. The opportunity cost of an extra calculator for Smith is __________ and for Jones it is __________. A) .10 computers; .05 computers B) 10 computers; 6 computers C) 1 computer; .5 computers D) .6 computers; 1.2 computers E) .05 computers; .10 computers Who has the comparative advantage? Given two producers with PPC’s of different slopes, the producer with the FLATTER curve has the comparative advantage in the good measured along the HORIZONTAL. Fuel Efficiency Standards Should they be legislated? Winners? Losers? Any alternative? 2. In the long- run if the production of all goods increases for a society (there is a economic growth), it will cause the production possibility curve to A) shift inward B) shift outward C) first shift inward and then shift outward D) stay the same E) none of the above Supply, Demand and Market Equilibrium Competitive Market Lots of buyers and sellers dealing in identical goods, and enjoying well-defined property rights. Law of Demand: P↓→QD↑ Market Demand as the Sum of Individual Demands Shifts in the Demand Curve Shift Factors for Demand Income. Number of buyers. Prices of related goods (substitutes and complements). Expectations. Demographic changes. Tastes/Preferences. Shifts in the Demand Curve versus Movements along the Demand Curve Figure 3 How the Price Affects Consumer Surplus Figure 3 How the Price Affects Consumer Surplus 3. Which of the following will NOT cause a shift in the demand curve for Athlon processors (Pentium III processors are substitutes for Athlon processors, processors are a major part of a computer)? A) An increase in the price of memory. B) A decrease in the price of Pentium III processors. C) A decrease in the price of motherboards. D) A decrease in the price of Athlon processors. E) An increase in consumers incomes.