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PER UNIT TAX: A tax that is specified as a fixed amount for each unit of a good sold. Federal excise taxes on gasoline and cigarettes fall into this per unit tax category.

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Lesson 5: Demand | Unit 1: Buying Basics Page: 3 of 20

Topic: Quantity Demanded <=PAGE BACK | PAGE NEXT=>

Second, quantity demanded.

Quantity demanded is the specific quantity of a good that buyers would be willing and able to buy at a specific price.

  • Price and quantity demanded are a pair of numbers that go together.
Quantity demanded is not the same as demand.
  • Demand is the entire range of prices and quantities (all pairs of numbers).
  • Quantity demanded is a specific quantity at a specific price (a quantity paired with a price).

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UNSTABLE EQUILIBRIUM

Equilibrium that is not restored if disrupted by an external force. Few economic models have an equilibrium that is unstable, reflecting the observation that the real world adapts to changes and maintains a fair degree of stability. However, there are situations where an unstable equilibrium more accurately reflects economic phenomena. The alternative to an unstable equilibrium is a stable equilibrium.

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Today, you are likely to spend a great deal of time at an auction seeking to buy either storage boxes for your income tax returns or an AC adapter for your CD player. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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Two and a half gallons of oil are needed to produce one automobile tire.
"Plans are only good intentions unless they immediately degenerate into hard work."

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