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For Years, Your Neighbor Insisted She Had No Desire to Own

question 136

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For years, your neighbor insisted she had no desire to own a computer. Recently, however, she purchased one and says she did so because all her relatives have computers and she wants to exchange e-mail with them. Your neighbor's behavior is an example of


Definitions:

Fixed Supply

A condition where the quantity of a particular good, service, or resource does not change, regardless of the price.

MRP

Marginal Revenue Product, which refers to the additional revenue generated from employing one more unit of a resource.

Perfectly Elastic

A situation in which the demand or supply for a good or service is infinitely responsive to changes in price.

Pure Rent

Pure Rent refers to the income earned from the use of land or other natural resources when supply is perfectly inelastic.

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