ECON 110 - Class Notes - 02.05.08

ECON 110 - Class Notes - 02.05.08 - ECON 110: Class Notes...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 110: Class Notes 02/05/08 Supply vs. Demand 2 independent concepts that influence each other. Impact if the government increases the cost of producing coal by $1/ton by imposing stricter  safety requirements. This will decrease the supply of coal. A’, B’, C’ are points with higher (increased) costs of production yielding the same  quantity. The entire supply curve shifted up and to the left o Left   decrease If the price is $11/ton, only 100 tons/day will be produced. (Supplied) A decrease in supply means: o B – A’: at the same price producers supply less quantity. o B – B’: at a higher price of $1/ton, the same quantity is supplied. Less always left. More is right. In a competitive world, the market will make sure this happens. Demand Curve Negatively sloped.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/11/2008 for the course ECON 110 taught by Professor Beck during the Spring '08 term at SUNY Oneonta.

Page1 / 2

ECON 110 - Class Notes - 02.05.08 - ECON 110: Class Notes...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online