Capital in the 21st Century - Capital in the 21st Century...

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Capital in the 21 st Century 02/15/2016 ° ° Article: Gordon Piketty’s argued that as long as the return on capital exceeds the economic growth rate, capitalism tends to ever more inequality. ° ° Demand and Supply Mechanics Price and Output Determination Value and Cost Equilibrium Price and Quantity Equilibrium price o Balances quantity supplied and quantity demanded o Market-clearing price Equilibrium quantity o Quantity supplied and quantity demanded at the equilibrium price ° Surplus Quantity supplied> quantity demanded(aka a given price) Excess supply Downward pressure on price o Movement along the demand and supply curves o Increase in quantity demanded o Decrease in quantity supplied ° Shortage Quantity demanded> quantity supplied(at any given price) Excess demand Upward in price o Movements along the demand and supply curves
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o Decrease in quantity demanded o Increase in quantity supplied. ° ° How to determine whether or not the equilibrium price has changed? ° Compare the initial and the new equilibrium Effects on equilibrium price and quantity ° ° ° ADAM SMITH: Born in 1723 in Scotland; died 1790.
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