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ABSOLUTE ADVANTAGE: The general ability to produced more goods using fewer resources. This idea of absolute advantage is important for trading that occurs between both people and nations. A nation can get an absolute advantage from an advanced level of technology or higher quality resources. For a person, an absolute advantage can result from natural abilities or the acquisition of human capital (education, training, or experience).
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Lesson 10: Utility and Demand | Unit 2: A Simple Choice
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Page: 6 of 21
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Topic:
Demand For A Good
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- Demand captures changes in quantity demanded resulting from changes in the price.
Let's take stock of what has happened:- The price of beach admission has declined from $1 per hour to $0.50 per hour.
- The quantity demanded of beach time has increased from 2 hours to 4 hours.
- Total utility has increased from 22 utils to 36 utils because a larger quantity has been consumed.
- Marginal utility has decreased from 10 utils to 6 utils, again because a larger quantity has been consumed and the law of diminishing marginal returns has been at work.
- In conclusion, the lower price of admission has allowed me to purchase a larger quantity of beach time with a given income.
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MARKET CLEARING A condition of the market in which the quantity demanded is equal to the quantity supplied, such that the market is "clear" of any shortage or surplus. Market clearing is a common, non-technical term for equilibrium. In a market graph, the market clearing is found at the intersection of the demand curve and the supply curve.
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BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time at a dollar discount store hoping to buy either a blue mechanical pencil or super soft, super cuddly, stuffed animals. Be on the lookout for crowded shopping malls.
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A U.S. dime has 118 groves around its edge, one fewer than a U.S. quarter.
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"I can't change the direction of the wind, but I can adjust my sails to always reach my destination." -- Jimmy Dean
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Employment
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