by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Price Controls?Price controls, as the name implies, seeks to regulate or control prices in the economy. They come in the forms of price ceilings and price floors. What is a Price Ceiling?A price ceiling is the maximum allowed under the law to be charged for a...
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 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 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 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 a Supply Schedule? A supply schedule is a list or table that demonstrates the quantity of a good or service supplied in a market at a given price. Related Topics Budget Constraint Radner Equilibrium Opportunity Cost Opportunity Set Marginal Analysis Utility...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Return to Scale?When viewing the long-run average cost curve, the average costs begin by going down as more units are produced. This is because of economies of scale. Eventually, economies of scale have been exhausted, and the LRAC curve goes flat. At this...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Learning Curve?A learning curve regards the rate of acquisition of knowledge or ability such that performance (such as productive output or lower costs) are achieved. A steep curve means that knowledge or ability must be acquired in a short period of time;...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Marginal Input Cost? Marginal cost is the additional cost of producing one more unit of output. It is not the cost per unit of all units produced, but only the next one (or next few). We calculate marginal cost by taking the change in total cost and dividing...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Derived Demand?In economics, derived demand means the extent to which a consumer’s desire for a given product or service at a given price is derived from (exists as a result of) another good or service. This often arises when the utility of one good is tied to...
