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MARKET ANALYSIS: The use of the market model to examine economic phenomenon involving demand, supply, prices, and exchanges. The simplest market analysis involves identifying equilibrium price and quantity, which is the point of intersection between the demand and supply curves. Some of the more useful market analysis, however, involves comparative static analysis of shifts in either the demand or supply curves, or both curves simultaneously. Other market analysis examines the consequences of price ceilings, price floors, and taxes.

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Lesson 4: Production Possibilities | Unit 4: Analysis Page: 14 of 24

Topic: Full Employment <=PAGE BACK | PAGE NEXT=>

We can use production possibilities to illustrate the full employment condition.
  • Full employment is the condition that exists when all available resources are engaged in the production of goods and services.
  • Full employment can be interpreted as any bundle that places the economy ON the production possibilities curve, including D and J.
  • L does not fully employ all resources.
  • M is not attainable.

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DEMAND SPACE

The area on or beneath a demand curve that indicates all possible price-quantity combinations acceptable to buyers. Buyers are willing and able to purchase any price-quantity combination that places them on or below the demand curve, but not above.

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APLS

BLACK DISMALAPOD
[What's This?]

Today, you are likely to spend a great deal of time calling an endless list of 800 numbers trying to buy either a pair of red goulashes with shiny buckles or a handcrafted bird feeder. Be on the lookout for pencil sharpeners with an attitude.
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This isn't me! What am I?

A U.S. dime has 118 groves around its edge, one fewer than a U.S. quarter.
"Inside the ring or out, ain't nothing wrong with going down. It's staying down that's wrong. "

-- Muhammad Ali

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American Air Export and Import Company
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