PAM 200 8.27 Notes - PAM 200 Economics The study of the...

Info icon This preview shows pages 1–2. Sign up to view the full content.

8/27/07 PAM 200 Economics - The study of the allocation of scarce resources Although scarce resources have changed dramatically; we study why there always are scarce resources although there is a vast difference between scarce resources in different time periods. Professor gave examples of how economics applies to everyday situations (FDA, lunch, and nyc parking example) Microeconomic Principles Ceteris Paribus Conditions Income (I) Price of related goods (Px) Tastes, or anything else that affects Demand (x) Demand Curve- Shows the relationship between price and quantity demanded
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 st law of Demand: As P increases, qD decreases Income If income increases and… a. Demand increases, the good is normal b. Demand decreases, the good is inferior Price of other goods • If the price of good Y increases, and as a result the demand for good X increases the goods are substitutes (ex. gasoline and natural gas) • If the price of good Y increases, and as a result the demand for good X decreases the goods are compliments (ex. gas and SUVs)...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern