Basic_Economics

Here are the three main points that I will be going for in the debate. The first point I will be using is the cost. You should tell why life imprisonment trials are cheaper than capital punishment trialsThe second point should be how capital punsihment is a deterrent from crimes that would cause one to be sentenced to death, The third point is how people who are found guilty of a crime are in fact guilty of that crime and they are not innocent.Now below are the notes from you macroeconomics class. * Elasticity * Defining and measuring eslasticity * The meaning and importance of elasticity. * Price elasticity of demand equals the ratio of the percent change in the quantity demanded to the percent charge. (Change X and see how it affects Y.) | * Price elasticity of demand equals percent change in quantity over percent change in price. * Inelastic has a value of less than one. A change in price has ltttle effect in quantity demanded. * Elastic - a small change in price results in large change in quantity demanded. * Unit elastic- the change in price equals a similar change in quantity demanded. * Total revenue is price times quantity/ * Price effect- each unit sells at a higher price which raises revenue. * Quantity effect- after a price increase fewer units are sold which lowers revenue. * Elastic raise price decrease total revenue lower price increase total revenue. * What determines elasticity:Are substitutes available, Is it a good or a necessity, share of income spent on the good or time spent.Small percent is inelastic and large percent is elastic. | Decision Making * Explicit cost is a cost that involves actual laying out of money. * Implicit cost idoes not involve laying out of money; it is measured by the value in dollar terms. The benefits are foregone, for example' what would you do with the money spent' * * Accounting profit is revenue minus explicit costs. Economic profit is revenue minus opportunity costs. Opportunity costs are both explicit and implicit. Marginal cost equals one addtitional good or service. Marginal benefit is the additional benefit earned from producing one more good or service. When marginal benefits equal marginal costs profits are maximized. A person should produce up to marginal benefit to equal marginal costs. Optimal quantity equals marginal costs. Sunk costs are costs that have already incurred and is non recoverable and should not be considered when making a decision on future purchases.