Changes

AllieT.  

AllieT.  

1. An externality is that not all buyers and consumers will bear all the costs and reap all the benefits from a transaction. An outside party could be affected by the externality whether it is positive or negative. An example of this would be pollution.  

1. An externality is that not all buyers and consumers will bear all the costs and reap all the benefits from a transaction. An outside party could be affected by the externality whether it is positive or negative. An example of this would be pollution.  

6. Goods A and B are substitutes. They are substitutes because as the price of one good goes up, the other good, which is at a lower cost, will be purchased in place of it.  

6. Goods A and B are substitutes. They are substitutes because as the price of one good goes up, the other good, which is at a lower cost, will be purchased in place of it.  

    Goods C and D are complements. They are complements because the negative elasticity shows that they goods are bought or used together. The increase in demand of good C will, also, increase the demand of good D.  

  Goods C and D are complements. They are complements because the negative elasticity shows that they goods are bought or used together. The increase in demand of good C will, also, increase the demand of good D.  

7.  1.Land- for building space

7.  1.Land- for building space

      2. Capital- money

    2. Capital- money

      3. Labor- workers

    3. Labor- workers

      4. Entrepreneurship- creativity of the owners and managers

    4. Entrepreneurship- creativity of the owners and managers