2 Sept 12 - condensed - MyEconLab Tricks and Tips Determinants of Demand for an Individual The Demand Curve for an Individual From Individual Demand to

2 Sept 12 - condensed - MyEconLab Tricks and Tips...

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MyEconLab Tricks and Tips Determinants of Demand for an Individual The Demand Curve for an Individual From Individual Demand to Market Demand Change in Demand vs. Chang in Quantity Demanded Determinants of Supply for an Individual Supplier The Supply Curve for an Individual Supplier From Individual Supply to Market Supply Change in Supply vs. Change in Quantity Supplied
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Equilibrium—Putting Supply and Demand Together The Necessity of Equilibrium Price Floors Price Ceilings Comparative Statics The Three Questions • Examples
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MyEconLab Tips and Tricks Key Point: Do not click “Submit” until you are ready to have your quiz graded. After you click submit, you cannot change your answer.
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MyEconLab Tips and Tricks Key Point: Do not click “Submit” until you are ready to have your quiz graded. After you click submit, you cannot change your answer. However, you can save your questions before you have submitted them simply by exiting your browser—there is no “Save” button or anything. Once you log back into MyEconLab, you will be able to continue the quiz where you left off, go back and change answers, etc.
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MyEconLab Tips and Tricks Key Point: Do not click “Submit” until you are ready to have your quiz graded. After you click submit, you cannot change your answer. Once you click “Submit,” however, you will not be able to change anything, and your test will be automatically graded. After the due date , you can click the “Review” button, and you will be able to see your answers as well as the correct answer.
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Micro vs. Macro Microeconomics Economic decisions of individuals: Individual consumers (households) Individual firms Individual markets Macroeconomics Economy as a whole All consumers All firms All markets
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Determinants of Demand Price Income Normal goods: Goods whose demand increases when income increases Inferior goods: Goods whose demand decreases when income increases Price of Related Goods Substitutes: Demand goes up when the price of a substitute goes up Complements: Demand goes down when the price of a complement goes up Tastes and Preferences Expectations
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The Demand Schedule Demand schedule : A table that shows the relationship between the price of a good and the quantity demanded. ....... holding all non-price determinants constant i.e., income, price of related goods, tastes, expectations
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The Demand Schedule Demand schedule : A table that shows the relationship between the price of a good and the quantity demanded. Example: Maria’s demand for lattes. Given her income of $50,000, price of tea of $2.00/cup, her taste for lattes, her expectations about the future Price of lattes Quantity of lattes demanded $0.00 16 1.00 14 2.00 12 3.00 10 4.00 8 5.00 6 6.00 4
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Price of Lattes Quantity of Lattes Maria’s Demand Schedule & Curve Price of lattes Quantity of lattes demanded $0.00 16 1.00 14 2.00 12 3.00 10 4.00 8 5.00 6 6.00 4
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Determinants of Market Demand Price Income Normal goods:
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