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Unformatted text preview: Market Equilibrium When Qs>Qd, surplus occurs Price will decrease, Increase Qd and Decrease Qs Barring Price Floors Case One: • Change in tastes of good, Increase • Increase Demand, Increase P+Q and equilibrium Case Two: • Change in technology (Increase in efficiency in production) • Increase Supply, Decrease P, Increase Q Case Three: 1) Change in Demand: a) Some increase in money income b) Change in tastes in favor c) Decrease prices of compliments d) INCREASE 2) Change in Supply: a) Change in Technology INCREASE...
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This note was uploaded on 09/01/2008 for the course MGT 244 taught by Professor Guarino during the Fall '07 term at Stevens.
- Fall '07