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Figure 1 The Production Possibilities Curve Figure 1 The Production Possibilities Curve Figure 2 How Trade Expands the Set of Consumption Opportunities Figure 2 How Trade Expands the Set of Consumption Opportunities Table 3-3. The Opportunity Cost of Meat and Potatoes FYI—The Legacy of Adam Smith and David Ricardo Adam Smith In his 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith performed a detailed analysis of trade and economic interdependence, which economists still adhere to today. David Ricardo In his 1816 book Principles of Political Economy and Taxation, David Ricardo developed the principle of comparative advantage as we know it today. APPLICATIONS OF COMPARATIVE ADVANTAGE Should Tiger Woods Mow His Own Lawn? Chapter 3 什么是绝对优势? 什么比较优势和机会成本?如何计算机会成本? Table 3-1. The Demand Schedule Relate Quantity Demanded to Price Figure3-2. A Downward-sloping demand curve relates quantity demanded to price Prices(P) are measured on the vertical axis while quantity demanded(Q) is measured on the horizontal axis. Each pair of (P,Q) numbers from Table3-1 is plotted as a point and then a smooth curve is passed through the points to give us a demand curve,DD. Figure 1 Catherine’s Demand Schedule and Demand Curve Figure 3 Shifts in the Demand Curve Table 3-3. Supply Schedule Relate Quantity supplied to Price Figure3-2. Supply curve relates quantity supplied to price Supply curve plots the price and quantity pairs from Table3-3. A smooth curve is passed through the points to give the upward-sloping supply curve,SS. Figure 5 Ben’s Supply Schedule and Supply Curve Figure 7 Shifts in the Supply Curve Figure 8 The Equilibrium of Supply and Demand Figure 9 Markets Not in Equilibrium Figure 9 Markets Not in Equilibrium Figure 10 How an Increase in Demand Affects the Equilibrium Figure 11 How a Decrease in Supply Affects the Equilibrium Ch4. Question and Answer Variables That Influence Buyers? Compare change in quantity demanded to change in deman
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