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Chapter Two Demand and Supply
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additional unit allocation analysis assume assumption behavior benefit budget constraint bundle capital cartel Chapter consider constant consumer consumer's surplus consumption curve in Figure decline decrease demand curve determine economists efficient elasticity of demand equal Equation example factor inputs firm's gasoline given horizontal income effect increase indifference curve individual industry input combination intersection isocost isoquant curve less level of output long-run average cost LRAC curve LRMC marginal cost marginal product marginal rate marginal revenue marginal value market price maximize minimum monopolistically competitive monopoly obtain oligopoly optimal Pareto-efficient perfectly competitive perfectly competitive firm political pollution position possibility curve preferences price ceiling price discrimination price elasticity production function profit-maximizing purchase pure profits rate of substitution ratio reduce result revenue curve short-run shown in Figure SRAC SRMC SRMC curve SRTC suppliers supply curve tangent tion total revenue units of labor utility voters voting rule wage wheat