Chapter 3 Study Guide

Chapter 3 Study Guide - that could have been produced...

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Ch. 3 - Supply Supply : willingness to sell - individual’s supply of a good is set of QS at all conceivable Prices, ceteris paribus (only P offered for good can change) - In every exchange, each party supplies one good and demands another. Supply Price : lowest price at which one would sell Quantity Supplied : number of units one will choose to sell. Cost : value of the best sacrificed alternative Reserve Demand : willingness to keep Stock : number of units in existence - an increase in demand for other goods that use the resources reduces the supply of our good . Law of Supply : QS of a good varies DIRECTLY with P offered for it. Supply curves slope upward. - supply of a good varies inversely with individuals’ demands for other goods
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Unformatted text preview: that could have been produced instead.- supply of a good is not affected by changes in demand for it.- to get someone to supply you with a good, OUTBID others who value other uses of the resources.-if you want someone to buy, make them believe it is their best alternative . *when referring to example problems dealing with stock, reserve demand, and quantity supplied. ... make sure you state it is the person’s QUANTITY reserve demanded, not just reserve demand. EXAMPLE GRAPHS: modest increase in demand when the price of an important for a good. input to create a good calls. (NO CHANGE in supply) (INCREASE in supply) when the sale of a good is made illegal. (DECREASE in supply)...
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This note was uploaded on 04/18/2008 for the course ECON 201 taught by Professor Egger during the Fall '06 term at Towson.

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Chapter 3 Study Guide - that could have been produced...

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