# Register now to access 7 million high quality study materials (What's Course Hero?) Course Hero is the premier provider of high quality online educational resources. With millions of study documents, online tutors, digital flashcards and free courseware, Course Hero is helping students learn more efficiently and effectively. Whether you're interested in exploring new subjects or mastering key topics for your next exam, Course Hero has the tools you need to achieve your goals.

2 Pages

### Shifts_Supply_Demand

Course: EC 201, Fall 2008
School: Portland
Rating:

Word Count: 845

#### Document Preview

Shifts Simultaneous of Supply and Demand Curves When shift factors on both supply and the demand side are considered simultaneously, the magnitude of changes in quantity or price may be ambiguous. Consider the following examples: Price S1 S2 Price S2 S1 D1 D1 D2 D2 (a) Quantity (b) Quantity Price S2 S1 Price S1 S2 D1 D2 D1 D2 (c) Quantity (d) Quantity 1. Outward shift in both supply and demand...

Register Now

#### Unformatted Document Excerpt

Coursehero >> Oregon >> Portland >> EC 201

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
Shifts Simultaneous of Supply and Demand Curves When shift factors on both supply and the demand side are considered simultaneously, the magnitude of changes in quantity or price may be ambiguous. Consider the following examples: Price S1 S2 Price S2 S1 D1 D1 D2 D2 (a) Quantity (b) Quantity Price S2 S1 Price S1 S2 D1 D2 D1 D2 (c) Quantity (d) Quantity 1. Outward shift in both supply and demand - Figure (a). When supply shifts out to the right, the equilibrium price falls and the equilibrium quantity increases. If in addition demand shifts out to the right, the equilibrium price will rise and the equilibrium quantity will increase. The aggregate effect on quantity is an unambiguous increase. The effect on price however is unclear in the absence of the precise magnitude of change on both the supply and demand side. In Figure (a), the shifts are drawn such that the equilibrium price before and after the shifts remains the same. Whether the price in equilibrium rises or falls depends on the magnitude of the shift in both supply and demand. Two Practice Problems: Redraw Figure (a) so that an outward shift in both supply and demand results in a higher equilibrium price after the shifts as compared to the original equilibrium price. Repeat the exercise once more but this time redraw Figure (a) so that an outward shift in both supply and demand results in a lower equilibrium price after the shifts as compared to the original equilibrium price. Compare your pictures to Figure (a) what is different? 2. Inward shift in both supply and demand - Figure (b). When supply shifts in to the left, the equilibrium price increases and the equilibrium quantity falls. If in addition demand shifts in to the left, equilibrium price will fall and the equilibrium quantity will decrease. The aggregate effect on quantity is an unambiguous decrease. The effect on price however is unclear in the absence of the precise magnitude of change on both the supply and demand side. In Figure (b), the shifts are drawn such that the equilibrium price before is slightly lower compared to equilibrium price after the shifts. Again, whether the price in equilibrium rises or falls depends on how much supply and demand shift in. 1 Two Practice Problems: Redraw Figure (b) so that an inward shift in both supply and demand results in an equilibrium price that is significantly higher after the shifts as compared to the original equilibrium price. Repeat the exercise once more but this time redraw Figure (a) so that an inward shift in both supply and demand results in a lower significantly equilibrium price after the shifts as compared to the original equilibrium price. Compare your pictures to Figure (b) what is different? 3. Outward shift in demand and an inward shift in supply - Figure (c). When supply shifts in to the left, the equilibrium price increases and the equilibrium quantity falls. If in addition demand shifts outward (to the right), equilibrium price will increase and equilibrium quantity will increase. The aggregate effect on quantity is uncertain whether equilibrium quantity increases or decreases relative to the original equilibrium will depend on the magnitude of the shifts in demand and supply. The effect on price is an unambiguous increase. In Figure (c), the shifts are drawn such that the equilibrium quantity before the shifts in supply and demand is slightly higher than after the shifts. Two Practice Problems: Redraw Figure (c) so that an inward shift in supply and an outward shift in demand result in a significantly higher equilibrium quantity after the shifts as compared to the original equilibrium quantity. Repeat the exercise once more but this time redraw Figure (a) so that your diagram shows a significantly lower equilibrium quantity after the shifts as compared to the original equilibrium quantity. What type of shifts in supply and demand will leave equilibrium quantity unchanged (i.e. equilibrium quantities before and after shifts are same)? 4. Outward shift in supply and an inward shift in demand - Figure (d). When supply shifts out to the right, the equilibri...

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

Portland - EC - 201
a. What is the equilibrium price of bicycles?b. What is the equilibrium quantity of bicycles?c. If the price of bicycles were \$100, is there a surplus or a shortage? How many units of surplus or shortage are there? Will this cause the price to ri
Portland - EC - 201
According to the graph, without trade, consumer and producer surplus would be:CS = 0.5(7*70) = \$245 PS = 0.5 (6*70) = \$2101Price and Quantity with free tradeWITH FREE TRADE: 1. According to the graph, with free trade, P = 10, QD = 40, QS = 10
Portland - EC - 201
5FIRM BEHAVIOR AND THE ORGANIZATION OF INDUSTRYThe Costs of Production13Copyright2004 South-WesternThe Market Forces of Supply and Demand Supply and demand are the two words that economists use most often. Supply and demand are the forces
Portland - EC - 201
THE WELFARE COST OF MONOPOLY In contrast to a competitive firm, the monopoly charges a price above the marginal cost. From the standpoint of consumers, this high price makes monopoly undesirable. However, from the standpoint of the owners of the f
Portland - EC - 201
Monopolistic Competition17Copyright2004 South-WesternMonopolistic Competition Imperfect competition refers to those market structures that fall between perfect competition and pure monopoly.Copyright 2004 South-WesternThe Four Types of Ma
Portland - EC - 201
Types of Industrial Organizationu PureCompetition or Perfect Competition Competitionu Monopoly u Monopolistic u OligopolyPerfect CompetitionAssumptions of Perfect Competitionu Many uindependent firms Each seller is small relative to the w
Cornell - CK - 275
Chulmin KimCornell University Department of Statistical Science Email: ck275@cornell.edu http:/www.people.cornell.edu/pages/ck275 210 Lake St. #9A Ithaca, NY 14850 USA (617) 459 8882Education2007/05 2006/05 2005/08 Cornell University, Department
Cornell - CK - 275
Boston university Department of Economics Chulmin KimEC541 Monetary Theory &amp; Macroeconomics Professor Adrien Verdelhan Falll 2005Chulmin Kim (U38027154) 1) The two definitions of the expectation hypothesis presented above are equivalent.Let assu
Cornell - CK - 275
EC541 Topics in Monetary Policy and Macroeconomics From Macroeconomics to FinanceChulmin Kim1. Basic Pricing Equation1.1 Utility-Based Asset Pricing The payoff xt +1 is a random variable at t. an investor does not know exactly how much he will g
Cornell - CK - 275
EC541 Topics in Monetary Policy and Macroeconomics Expectation HypothesisChulmin KimEC541 Topics in Monetary Policy and Macroeconomics Expectation HypothesisChulmin Kim
Cornell - CK - 275
Cornell - CK - 275
Cornell - CK - 275
Cornell - CK - 275
Cornell - CK - 275
STSCI501 Applied Statistics Logistic Regression Discriminant Analysis: Feature vector x is random variable. Class is fixed Logistic Regression : Class is random variable. Feature vector is fixed.Chulmin KimrLogistic model ex G ( x) = 1 + exx
Cornell - CK - 275
STSCI501 Applied Statistics Neuro-NetworksChulmin KimNeuro networks can approximate any class boundary to any degree of precision.PerceptronEverything is connected to everything so it is the better way of doing classification. You weight each
Cornell - CK - 275
STSCI501 Applied Statistics Tree Structure Tree structureChulmin KimA tree is a widely-used data structure that emulates a tree structure with a set of linked nodes. Each node has zero or more child nodes, which are below it in the tree. A node t
Cal Poly Pomona - CS - 158
%!PS-Adobe-3.0 %DocumentNeededResources: font Helvetica %+ font Helvetica-Bold %+ font Helvetica-Oblique %+ font Helvetica-BoldOblique %+ font Symbol %DocumentMedia: letter 612 792 0 () () %Title: R Graphics Output %Creator: R Software %Pages: (atend
Cal Poly Pomona - CS - 158
%!PS-Adobe-2.0 %Creator: dvips(k) 5.90a Copyright 2002 Radical Eye Software %Title: exam2.dvi %Pages: 2 %PageOrder: Ascend %BoundingBox: 0 0 612 792 %DocumentFonts: CMR10 CMBX10 CMMI10 CMMI8 CMSY10 CMR8 CMSY8 Helvetica %+ Helvetica-Bold Helvetica-Obl
Stanford - CS - 444
%!PS-Adobe-3.0 %Title: Microsoft PowerPoint Viewer - may-7-tcp %Creator: Pscript.dll Version 5.0 %CreationDate: 5/21/2002 15:12:49 %For: Expo 2 %BoundingBox: (atend) %Pages: (atend) %Orientation: Landscape %PageOrder: Special %DocumentNeededResources
UCSB - CS - 130
CS 130B DATA STRUCTURES AND ALGORITHMS Programming Assignment INDIVIDUAL WORK ON THIS ASSIGNMENT IS MANDATORY Due Date: May 20, 2009 at 2:00 PM Remember: Points will be deducted for homework turned in after the Due Date. Deadline: May 26, 2009 at 2:0
UCSB - CS - 130
k f d i m m s e j s h h d e d j k j i h h d gDVhTxipgxDllVTDiglVTe s j k e f m k j j s s i k i m t m i k j j h f d e j m i k e s m s e k j i e m i t s k v i j j s k s k i k d 4DdXTDpqpDoptTpTi4pgpsotx%4sTolgpTps4sgTg4PqxPDops4qp
UCSB - CS - 130
CMPSC 130B Written Assignment #1 Due Date: April 22, 2009 (2:00 PM). 80 Points. Remember: Points will be deducted for homework turned in after the Due Date. Deadline: April 24, 2009 (2:00 PM) Remember: No homework will be accepted after the Deadline
UCSB - CS - 130
CS 130B Written Assignment #2 Due Date: May 27, 2009 at 2:00PM Remember: Points will be deducted for homework turned in after the Due Date. Deadline: May 29, 2008 at 2:00PM Remember: No homework will be accepted after the Deadline. TURN IN THE HW IN
UCSB - CS - 130
CS-130B'Time and Space Complexity.1Program Performance\$CS-130B'Time and Space Complexity.2Example (Operation Count)\$ Performance: Amount of memory and time to run a program. Space Complexity: amount of memory needed to run a prog
UCSB - CS - 130
Slides.ShortPaths, Teofilo F. Gonzalez UCSB This material can only be used for UCSB CMPSC 130b Winter 2005 and you may print the slides for that purpose (and keep them forever). This material is protected under the Copyright law and cannot be copied
San Jose State - CSCE - 461
Software Engineering Csce461/861 Assignment #1Due Date 10/03/01 at the BEGINNING of classDeliverables: Hand in a hardcopy and e-mail an attached electronic copy. 1. Use your individual problem statement and generate the following: a. Data Flow Diag
UCSB - CS - 130
Slides.SpanningTrees, Teofilo F. Gonzalez UCSB This material may only be used for UCSB CMPSC 130b Winter 2005 and you may print the slides for that purpose. This material is protected under the Copyright law and cannot be copied and/or distributed ma
San Jose State - CSCE - 461
Software Engineering Csce461/861 Assignment #3Due Date 11/09/01 at the BEGINNING of classDeliverables: Hand in a hardcopy and e-mail an attached electronic copy. 1. Use your individual problem statement and generate the following: a. State Transiti
UCSB - CS - 130
Slides.HuffmanCodes, Teofilo F. Gonzalez UCSB This material may only be used for UCSB CMPSC 130b Winter 2005 and you may print the slides for that purpose. This material is protected under the Copyright law and cannot ee copied and/or distributed man
San Jose State - CSCE - 461
Problem Statement for AssignmentsProblem Statement RequirementsDue Date: Wednesday, Friday, Sept. 14, 2001 at the BEGINNING of classHand in the following (one per student):When submitting a problem description, you should use the following struct
San Jose State - CSCE - 461
Software EngineeringDr. Mohamed Fayad, Associate Professor Department of Computer Science &amp; Engineering University of Nebraska, Lincoln Ferguson Hall, P.O. Box 880115 Lincoln, NE 68588-0115 http:/www.cse.unl.edu/~fayad 1998-01 FayadUNL - CSEL
San Jose State - CSCE - 461
Software EngineeringDr. Mohamed Fayad, Associate Professor Department of Computer Science &amp; Engineering University of Nebraska, Lincoln Ferguson Hall, P.O. Box 880115 Lincoln, NE 68588-0115 http:/www.cse.unl.edu/~fayadMEF-TRANSITION-P1-L3-1Dr.
San Jose State - CSCE - 461
Software EngineeringDr. Mohamed Fayad, Associate Professor Department of Computer Science &amp; Engineering University of Nebraska, Lincoln Ferguson Hall, P.O. Box 880115 Lincoln, NE 68588-0115 http:/www.cse.unl.edu/~fayad 1998-01 FayadUNL - CSEL
San Jose State - CSCE - 461
Software EngineeringDr. Mohamed Fayad, Associate Professor Department of Computer Science &amp; Engineering University of Nebraska, Lincoln Ferguson Hall, P.O. Box 880115 Lincoln, NE 68588-0115 http:/www.cse.unl.edu/~fayadMEF-TRANSITION-P1-L4-1 Dr.
UCSB - CS - 130
fTe9@G&amp;6( G1ypi&amp;HFiG11 @( @9(% %SpA\$3&amp;&amp;) QR6P13 I h9U@&amp;F(TE T% TEDT(8C\$s ( @i03FG&amp;iypiy G 8 1pi\$C4 SF
San Jose State - CSCE - 461
Software EngineeringDr. Mohamed Fayad, Associate Professor Department of Computer Science &amp; Engineering University of Nebraska, Lincoln Ferguson Hall, P.O. Box 880115 Lincoln, NE 68588-0115 http:/www.cse.unl.edu/~fayad 1998-01 FayadUNL - CSEL
San Jose State - CSCE - 461
Software EngineeringDr. Mohamed Fayad, Associate Professor Department of Computer Science &amp; Engineering University of Nebraska, Lincoln Ferguson Hall, P.O. Box 880115 Lincoln, NE 68588-0115 http:/www.cse.unl.edu/~fayadMEF-TRANSITION-P2-L7-1Dr.
San Jose State - CSCE - 461
Software EngineeringDr. Mohamed Fayad, Associate Professor Department of Computer Science &amp; Engineering University of Nebraska, Lincoln Ferguson Hall, P.O. Box 880115 Lincoln, NE 68588-0115 http:/www.cse.unl.edu/~fayadMEF-TRANSITION-P3-L10-1Dr.
UCSB - CS - 130
CS 230'Local.Search-0\$CS 230'Local.Search-1\$UCSB&amp;TG%UCSB&amp;TG%CS 230'Local.Search-2\$CS 230'Local.Search-3\$UCSB&amp;TG%UCSB&amp;TG%CS 230'Local.Search-4\$CS 230'Local.Search-5\$UCSB
UCSB - CS - 130
CS 230'Local.Search-0\$CS 230'Local.Search-1\$UCSB&amp;TG%UCSB&amp;TG%CS 230'Local.Search-2\$CS 230'Local.Search-3\$UCSB&amp;TG%UCSB&amp;TG%CS 230'Local.Search-4\$CS 230'Local.Search-5\$UCSB
San Jose State - CSCE - 461
Saturdays Software Engineering Lectures &amp; Labs Dates/TimesSept. 29, 2001 10:00 a.m. to 1:00+ p.m. Oct. 13, 2001 10:00 a.m. to 1:00+ p.m. Nov. 3, 2001 10:00 a.m. to 1:00+ p.m. Nov. 17, 2001 10:00 a.m. to 1:00+ p.m.TopicsTransformation Models: Data
San Jose State - CSCE - 461
CSCE963: Software Process EngineeringSubmission Guidelines:1. All materials must be submitted on time. 2. All materials must be handed in as hardcopies and electronically. 3. For Electronic submissions: a. Use Microsoft Word Format b. File Name for
San Jose State - CSCE - 461
Problem Statement: A Photo Description Entry System By Gennette Gill Background Problem description Use Cases Background Avid photographers often develop the habit or labeling pictures as soon as they come back from being developed. Useful informatio
San Jose State - CSCE - 461
Guidance SystemJason Brozek Abstract With this high speed world of the business and most families having both parents work, the chance for a parent to interact with the teachers of their children becomes more difficult. The classic scene of a child
San Jose State - CSCE - 461
Problem Statement: Web Search EnginePrepared by Kuanhua ChenBackground Problem description Use CasesBackground This system is based on the web search engine of &quot;Yet Another Hierarchical Officious Oracle&quot; (yahoo), which was established of the fir
San Jose State - CSCE - 461
Problem Statement: An Internet Based Distributed Video Delivery SystemProposed by: Ryan Kinworthy Background With the proliferation of broadband Internet connections to the home in recent years, the delivery of high quality video content in real-tim
San Jose State - CSCE - 461
Problem Statement: Material Management System in Electric Power Construction CompanyPrepared by Yuanyuan Lu Background Domain Description Problem Description Use Cases Background This system is based on the material management system of one electric
San Jose State - CSCE - 461
San Jose State - CSCE - 461
Problem Statement: A Image Storing Disc System Prepared by Shi Aiwu Background Desired programs Use Cases Background At present, there is a camera-monitoring system in each of bank office building in china. The way to monitor mainly involves capturin
San Jose State - CSCE - 461
Sohaib Khan Problem Statement CSCE461 14th September 2001Interface for Video Store Abstract:Generation X video store wants to develop a new interface for their store. The need for this arises as there are more and more thefts going on at their sto
San Jose State - CSCE - 461
Problem Statement: EVENT/CONCERT PLANNING APPLICATION Prepared by Thomas St. GermainABSTRACTPlanning a large-scale event is an enormous task. It takes not only the hard work of several people, but also effective communication between those individ
San Jose State - CSCE - 461
Problem statement: a system for the luxury CinemaPrepared by YongHong Wang Background Description of domain Use Cases Background It is a modern cinema, as more and more movie funs to go to this cinema and enjoy the good sound effects, more employees
San Jose State - CSCE - 461
Problem Statement: A Credit Card WebsitePrepared by Jingfei Xu Introduction Problem description Use cases Introduction As time flows, we step into the e-times. People send and get all kinds of information from the website, such as sending e-mail,
San Jose State - CSCE - 461
Problem Statement: Online Textbook Trading SystemPrepared by Choong Wai, Yuen Background Problem Description Use Cases Background After gathering suggestions and opinions from various students and conducted a survey at the University of Nebraska-Lin
San Jose State - CSCE - 461
Problem statement: a system for the luxury CinemaPrepared by YongHong Wang Background Description of domain Use Cases Background It is a modern cinema, as more and more movie funs to go to this cinema and enjoy the good sound effects, more employees
UCSD - CSE - 225
%!PS-Adobe-3.0%Title: (Microsoft Word - bill.doc)%Creator: (Microsoft Word: LaserWriter 8 8.6)%CreationDate: (9:49 AM Friday, May 19, 2000)%For: (Helen Fricker)%Pages: 13%DocumentFonts: TimesNewRomanPSMT TimesNewRomanPS-BoldMT TimesNewRomanPS-ItalicM
UCSB - CS - 130
UCSB - CS - 130
UCSB - CS - 130
UCSB - CS - 130