by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Elasticity of Supply?Elasticity of supply is the extent to which the supply of goods or services changes compared to a change in the price paid for those goods or services. Like elasticity of demand, elasticity of supply is measured as the percentage change...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Elasticity? Elasticity measures the extent to which the demand for a good changes with the change in another metric. The most common metric is price; but, there can be other things – such as changes in demand or price for other goods.What is Infinite...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Consumer Surplus?A consumer surplus is the value that a consumer receives when purchasing an item above and beyond the value the consumer was required to provide to obtain the good or service. What is a Producer Surplus?A producer surplus is the additional...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Substitute Goods?Substitute goods are alternative goods that satisfy the same need or want for the consumer as the primary good. The substitute good, as the name implies, is an alternative option to purchasing the primary good. For example, a Swiffer is a...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Dead Weight Loss?Deadweight loss is when the economy produces inefficiently and total surplus (either consumer surplus or producer surplus) is lost. Related Topics Budget Constraint Radner Equilibrium Opportunity Cost Opportunity Set Marginal Analysis Utility...
