Question

The problem of making choices regarding what to produce and in what quantities can be illustrated with a possibilities curve. Goods that bring us immediate satisfaction, like food, mag- azines, and CDs are called \textit{consumer} goods. Goods like machines, that give little immediate pleasure but that help increase output of goods and services in the future, are called ______ goods. When a production possibilities curve is bowed outward from the origin it is because of the law of ______ cost. 

          The problem of making choices regarding what to produce
and in what quantities can be illustrated with a
possibilities curve.
Goods that bring us immediate satisfaction, like food, mag-
azines, and CDs are called \textit{consumer} goods. Goods like
machines, that give little immediate pleasure but that help
increase output of goods and services in the future, are
called ______ goods.
When a production possibilities curve is bowed outward
from the origin it is because of the law of ______ cost.
Show more…
The problem of making choices regarding what to produce and in what quantities can be illustrated with a possibilities curve. Goods that bring us immediate satisfaction, like food, mag- azines, and CDs are called consumer goods. Goods like machines, that give little immediate pleasure but that help increase output of goods and services in the future, are called goods. When a production possibilities curve is bowed outward from the origin it is because of the law of cost.

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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The problem of making choices regarding what to produce and in what quantities can be illustrated with a possibilities curve. Goods that bring us immediate satisfaction, like food, magazines, and CDs are called consumer goods. Goods like machines, that give little immediate pleasure but that help increase output of goods and services in the future, are called capital goods. When a production possibilities curve is bowed outward from the origin it is because of the law of increasing opportunity cost.
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the-degree-to-which-the-quantity-of-a-good-is-provided-or-demanded-in-response-to-changes-in-its-price-income-or-the-availability-of-alternatives-is-known-as-its-elasticity-of-supply-and-demand-it-is

The degree to which the quantity of a good is provided or demanded in response to changes in its price, income, or the availability of alternatives is known as its elasticity of supply and demand. It is computed by dividing the percentage change in quantity provided or required by the percentage change in price, income, or substitute availability. A product is said to be elastic when the percentage change in quantity supplied or sought is higher than the percentage change in price, revenue, or the availability of alternatives. On the other hand, a product is deemed inelastic if the percentage change in quantity provided or required is less than the percentage change in price, revenue, or the availability of alternatives. -Supply elastic: Goods like apparel, toys, and electronics that are easily and quickly produced are examples of supply elastic. Suppliers may swiftly boost production to satisfy demand when the price of these products rises, which leads to a significant increase in the quantity supplied. things that are not necessities, like soft drinks, for which there are other options and substitutes. Fidget spinners, which just need simple raw materials and are comparatively simple to create. Taxi services are comparatively simple to offer and may be scaled to meet demand. - Supply inelastic: Goods like private planes, luxury automobiles, and yachts that are costly or difficult to make are examples of products with an elastic supply. There is only a slight increase in the quantity supplied when suppliers find it difficult to meet demand when the price of these products rises. One example of a good with an inelastic supply is a nuclear reactor, which requires a lot of experience and time to produce. Respond to this discussion post

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refer-to-the-following-production-possibilities-table-for-consumer-goods-automobiles-and-capital-goods-forklifts-a-show-these-data-graphically-upon-what-specific-assumptions-is-this-producti-36875

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a-upon-what-specific-assumptions-is-this-production-possibilities-curve-based____________________________________________________________b-if-the-economy-is-at-point-c-what-is-the-opportunit-18343

a. Upon what specific assumptions is this production possibilities curve based? b. If the economy is at point C, what is the (opportunity) cost of 2 more automobiles? c. What is the (opportunity) cost of 6 more forklifts? d. Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? e. If the economy characterized by this production possibilities table and curve is producing 3 automobiles and 20 forklifts, what could you conclude about its use of available resources? The economy is efficiently utilizing its available resources. f. Is production at a point outside the production possibilities curve currently possible? No, production at a point outside the production possibilities curve is not currently possible. g. Could a future advance in technology allow production beyond the current production possibilities curve? Yes, a future advance in technology could allow production beyond the current production possibilities curve. h. Could international trade allow a country to consume beyond its current production possibilities curve? Yes, international trade could allow a country to consume beyond its current production possibilities curve. Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Production Alternatives Type of Production Automobiles Forklifts 30 27 21 12 Show these data graphically. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 4 points total)

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Transcript

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00:01 This states the degree to which quantity of a good is provided or demanded in response to changes in its price, income, or availability of alternatives is elasticity of supply and demand.
00:16 So we can write out the equation or the formula for price elasticity of demand and price elasticity of supply.
00:29 It's percentage change in quantity of supply over percentage change in the price.
00:40 It's going to be elastic if the number on top is greater.
00:47 So we can illustrate what this is going to look like.
00:53 So if supply is elastic you can see that the line is closer to a horizontal line.
01:02 Same goes for demand.
01:04 If it's inelastic then the supply is going to be more steep.
01:15 And then the same goes for the demand.
01:19 So usually we would refer to elasticity and inelasticity as relatively elastic or inelastic because it's comparative.
01:49 So then let's talk about revenue and elasticity.
02:31 So along the demand curve we have different absolute values of elasticity of demand.
02:44 And we can also have this overlap with the graph of total revenue.
02:49 We draw a straight line down from where elasticity of demand is equal to 1.
02:59 So that is going to intersect with the peak of the total revenue curve...
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