ECN2802

Fall 2016 Review for Exam 2

Dr. Dao

· Shift factors for supply

· Shift factors for demand

· Effects on price and quantity of shifts in demand and supply

· Calculation of foreign exchange rate

· Effect of increase in imports on the demand for foreign currency

· Effect of price ceiling

· Effect of minimum wage on employment

· Examples of excise tax

· Tariff

· Effect of quantity restrictions on wage

· Price elasticity of demand

· Price elasticity of supply

· Perfect Inelastic Supply

· Perfect Inelastic Demand

· Perfectly Elastic Demand

· Slope and Elasticity along Straight-line demand curve

· Factors influencing the elasticity of demand

· Total revenue and price elasticity of demand

· Income Elasticity of Demand

· Utility Maximizing Rule

· Conspicuous consumption

· Assumption about taste for the theory of rational choice

· “Ultimate Game”

· Rational consumer

· Marginal utility vs. Total utility

· Relationship between marginal and total utility

· Principle of Diminishing Marginal Utility

· Focal point equilibria