Week 1 Knowledge Check

Knowledge reverse Week 1The material presented below is non meant to be a comprehensive attend of all you need to know in the content bea. Rather it is a get-go point for building your knowledge and skills. supernumerary study materials argon recommended in all(prenominal) area below to help you ensure the material. Personalized Study Guide Results establish 12 / 12 Concepts Mastery Questions set Decisions 100% merchandise Systems 100% Market Equilibrium 100% Concept determine Decisions Mastery 100% Questions 1 . tax receipts enhancement increases when A. roducer supernumerary increases Correct Producer surplus is the passing between the minimum scathe the producer is uncoerced to receive and what they actually receive. The surplus is their boodle, and the larger the surplus, the greater their profit on the good. When it decreases, the producer receives a legal injury closer to the minimum acceptable. The consumer surplus measures what the consumer is willing to pay and that tolls difference from the market monetary value. The closer to the market cost, the higher(prenominal) the consumer surplus, as consumers are spending ess than they are willing to, and the less spent, the lower the revenue will be for the good. Materials Producer senseless 2 . An increase in the expense of an inelastic goods C. increases revenues Correct nonresilient goods are necessities that consumers continue to purchase even when the expenditure increases. This increases the revenue, as more than is paid for each good. The percentage alternate in price increases faster than the change in amount of money, which may remain constant. When more is paid for a good or a service, revenue increases. Materials Price Elasticity and the Total-Revenue Curve Inelastic Demand 3 . Price centering of Demand increases whe C. people become more price in the altogether over snip Correct Price elasticity of quest measures the percentage change in quantity demand ed divided by the percentage change in price. Price elasticity is both inelastic or elastic. As the price elasticity of demand coefficient rises, price elasticity becomes more elastic. A low price elasticity coefficient relates to an item that has very few substitutes, which causes people to be less sensitive to a change in price, such as in gasoline or medicine (inelastic demand, Ed