Econ101September10 - Econ 101 I II III IV Supply and Demand...

Info icon This preview shows page 1. Sign up to view the full content.

Econ 101 SEPTEMBER 10, 2007 I. Supply and Demand model is the workhouse of Economics II. SUPPLY a. VERBAL: Describes the positive relation between the price of a good and the maximum quantity that producers are willing to sell at that price i. Ex.) When price falls from $25 to $10, the seller only wants to supply 4 instead of 10 objects to be sold ii. Direct relationship iii. When supply increases, the quantity supplied by producers increases at every price iv. Increase in supply NOT the same as movement along the supply curve b. TABULAR & GRAPHICAL: See Handout 4 i. When the quantity supplied changes, but the curve is not altered, this is called a change in supply ii. This is NOT an increase or decrease in supply, simply a CHANGE
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: c. EQUATION: i. Q = X + P ii. Increase/decrease in supply 1. Q = 3 + P Q = 10 + P (Increase) 2. Q = 3 + P Q = -4 + P (Decrease) III. DEMAND a. VERBAL: Describes negative relation between price of good and the maximum quantity that consumers are willing to buy at that price i. Inverse relationship ii. Increase in demand/ Decrease in Demand: Curve shifts up/Down b. EQUATION: i. Q = 40 – P ii. Increase/Decrease: Q = 50 – P v. Q = 30 – P IV. MARKET EQUILIBRIUM a. When quantity demanded equals quantity supplied b. Set equations equal to each other and solve (with respect to P) i. Ex.) 40 – P = 10 + P...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern