by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Demand Schedule? A demand schedule is a list or table of levels (or quantity) of demand for a good or service at a given price. In summary, it is the amount desired by consumers at a given price. Related Topics Budget Constraint Radner Equilibrium...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Equilibrium Price?Equilibrium price is the common price point where consumer demand (shown in the demand curve) is the same as the quantity produced by producers (producer surplus). What is Equilibrium Quantity?The equilibrium quantity is the quantity of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Ceteris Paribus?A demand curve or a supply curve is a relationship between two, and only two, variables: quantity on the horizontal axis and price on the vertical axis. The assumption behind a demand curve or a supply curve is that no relevant economic...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Economic Surplus of Goods? A excess or surplus of goods in the market arises when producers produce more of a good or service that consumers want or need at a given price. What is an Economic Shortage of Goods?A shortage, in contrast, arises when consumers...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Marginal Revenue? Marginal revenue is the amount of value received by a seller for selling one more unit of product or service. Generally, marginal revenue is calculated by dividing total revenue by total quantity sold prior to sale of another unit. Then the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Normal Profit?Normal profit, also known as “zero economic profit”, is the situation where a firm’s total revenue equals the combination of explicit and implicit costs. Total Revenue = Explicit + Implicit CostsNormal profit is unique from...
