Examlex
A driver consistently drives well beyond the interstate speed limit until a highway patrolman stops her and gives her a speeding ticket. From that time on, this driver never exceeds the speed limit on the interstate. In this example, the highway patrolman has successfully stopped this driver from speeding by using
Elasticity of Demand
A measure of how responsive the quantity demanded of a good or service is to a change in its price, indicating how changes in price influence consumer purchasing behavior.
Maximize Joint Profits
involves strategies or actions taken by two or more entities working together to achieve the highest combined financial gains.
Kinked Demand Curve Model
A model in economics suggesting that prices for certain goods are inflexible or sticky downward because firms fear that price decreases will be matched by competitors, but price increases may not be.
Marginal Cost
The charge for producing one extra unit of a product or service.
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