1. Sides Game

2. Increase in the Price of Corn
Effect on demand for corn?

3. Point to the Producer Surplus

4. If steak has an income elasticity of -0.6
It is a _______ good.

5. If Y has a cross price elasticity of -.8 with X
Y and X are?

6. Point to the Consumer Surplus

7. Decrease in P and Q
What single shift has occurred?

8. MU always
*except maybe in the beginning

9. One reason the demand curve slopes downward is that as one product gets more expensive, similar products become relatively cheaper.
This is called the ________ effect

10. Point to the Equilibrium Price

11. A price increase of a product will cause a decrease of _________ for that product

12. Point to the where DWL would appear if an excise tax is applied to this good.

13. Binding price floors cause?

14. Which causes misallocation of resources?
Binding Price Floors
Binding Price Ceilings
Non-Binding Price Floors
Non-Binding Price Ceilings

15. The amount of revenue a producer receives beyond the total cost is called?

16. PED value of 1 indicates

17. PED is the
% change in ______
___________________

18. The PED of a horizontal demand curve is

19. Who the burden of an excise tax?

20. Inelastic demand
A price increase will _____ TR

21. Point to a point on the Y-axis where a non-bonding price floor could be installed.

22. Unit price elasticity of demand
A price decrease will ____ TR

23. Optimal Purchase Rule
____ = ____

24. Point to the market clearing price Price

25. Consumer Equilibrium requires equalizing _____ within income limits