ECON545 Final Exam Study Guide

1. Demand and Supply (TCO A)

Know what the law of supply and demand is all about and be able to predict the impact on equilibrium price and/or quantity when supply and/or demand factors change. The interpretation of some basic graphs will be required.

1. Elasticity and Marginal Revenue (TCO B)

The label on this question suggests what you need to know. You need to be able to calculate price elasticity of demand and/or supply and be able to interpret it. Also, given demand, you need to be able to calculate marginal revenue when the price level changes. Remember that MR Change in TR / Change in Quantity.

1. Labor Productivity (TCO C)

Be able to calculate Marginal Product (MP), Marginal Revenue Product (MRP), Marginal Cost (MC), and determine the...