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Unformatted text preview: o The number of units exchanged is only as much as the maximum number of units demanded o Surplus When SUPPLY is the LIMITING FACTOR! o The number of units exchanged is only as much as the maximum number of units supplied o Shortage ANALYZING CHANGES IN EQUILIBRIUM Step #1: Which Curve Shifts? Step #2: Left or Right? Step #3: What happens to P(equil.) and Q(equil.) Its good to draw out your supply and demand curves Perfectly Elastic Horizontal Demand or Supply Perfectly Inelastic Vertical Demand or Supply Steep in slope Highly inelastic Very flat Highly Elastic OPERATING DEFICIT FOR NYC SUBWAY (Total Revenue) (Total Cost) = $24 Million 24.5 million (Total Revenue) (Total Cost) = - $0.5 million...
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This note was uploaded on 04/15/2008 for the course ECON 101 taught by Professor Golden during the Fall '07 term at Allegheny.
- Fall '07