Lecture 6 - of the product supplied by a rm. Law of Supply...

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Lecture 6 2/12/08 Demand Curve: shows the relationship between the price of a product and the quan- tity of the product demanded Law of Demand Ceteris Paribus P = Q.D P = Q.D Change in Quantity Demanded: Movement along curve What explains law of demand Substitution Effect: Change in relative prices of substitutes Income Effect: Change in purchasing power Supply Curve: Shows the relationship between the price of a product and the quantity
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Unformatted text preview: of the product supplied by a rm. Law of Supply Ceteris Paribus P = Q.S P = Q.S Change in Quantity supplied: movement along curve What Explains Law of Supply (prot) = P*Y - Cost of Production Labor = Y Price = What you give up (Opportunity Cost)...
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This note was uploaded on 04/15/2008 for the course ECON 102 taught by Professor Drozd during the Spring '08 term at Wisconsin.

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