Menu_23_Jan_06 - a Cost of labor(i.e wages b Other input...

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TODAY’S MENU: Monday 23 January 2006 I. BUSINESS A. Check in for new arrivals B. Practice Problems (Answers on Blackboard) 1. Chapter 3: ALL II. SUBSTANCE A. Buyers’ side of market: Demand 1. Determinants of Demand a. Expectations i. Future price (+) ii. Future income: normal good (+); inferior good (-) b. Number of buyers (+) 2. Graphically a. Change in Quantity Demanded: movement along curve b. Change in Demand: Shift of entire curve B. Sellers’ side of market: Supply 1. Definition 2. Not to be confused with Quantity Supplied 3. Determinant of Quantity Supplied a. Price of good (+) 4. Determinants of Supply
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Unformatted text preview: a. Cost of labor (i.e., wages) (-) b. Other input costs (-) c. Productivity (+) d. Expectations i. Future price (-) e. Number of sellers (+) 5. Graphically a. Change in Quantity Supplied: movement along curve b. Change in Supply: Shift of entire curve C. Market Equilibrium and Disequilibrium 1. Equilibrium: quantity supplied=quantity demanded 2. Disequilibrium a. Excess supply: Surplus b. Excess demand: Shortage c. Return to equilibrium III: NEXT TIME A. Finish Chapter 3: “Supply and Demand…”...
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