Economics, Markets, Supply and Demand, Cartels

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The short-run market supply curve:
-Elasticity of market supply - The purpose of the elasticity of supply is to measures the relationship between change in quantity supplied and a change in price.
If supply is elastic, companies can increase output without a rise in cost or a time delay
If supply is inelastic, companies will have a difficult time to make changes in production in a certain amount of time.
-Producer surplus in the short run - Producer surplus is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive. The level of producer surplus is shown by the area above the supply curve and below the market price and is illustrated in this diagram.

The analysis of competitive markets:
-Evaluating the gains and losses from government policies-consumer and producer surplus - When evaluation gains and losses from government policies concerning consumer and producer surplus, an economist must understand why people could benefit when the government has control over prices within competitive markets. Competition within the markets encourages businesses to always search for ways in improving the products. Improving products can lead to increase sales within the company and the economy. When a surplus is in effect, it's beneficial for companies to sell at a lower price or for the government to sell at a lower price to get at least some money.
-The efficiency of a competitive market - A competitive market is when the market has an adequate number of buyers and sellers for a product, service, or good that no one buyer or seller is able to implement full control over the market or the price.
-Minimum prices - Firms or government agencies may allow minimum prices for products, goods, or services to have a better chance of getting at least some money for a product, good, or service versus no money at all. After all, money is needed to pay creditors back for the inventory provided to firms or government agencies.
-Price supports and production quotas -A price support program is a program that is designed to increase market price by making purchases of the good and therefore, increasing the demand of that particular good. A production quota is a quota used to enforce limits on the number of goods a firm can produce.
-Import quotas and tariffs - Import quotas and tariffs are put in place to maintain a level of demand on a product and to keep the price of a good at a level in which the domestic country can profit from the sale of the good versus the free trade of the good.

-The impact of a tax or subsidy - Taxes and subsidies have an impact on the economy because they impact the price of a good and the quantity people are willing to pay for the good. If taxes on a good are high, other countries may purchase a limit amount of the good. A shift in subsidy may shift the demand and supply curves and impact if companies or countries want to buy to good or not.
Market power: Monopoly and Monopsony
-Monopoly and Monopsony - In a monopoly a company is not in competition with any other company because the company is the sole company with access to ...