Supply and DEmand

Supply and DEmand - CHAPTER 4: SUPPLY AND DEMAND Recall:...

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CHAPTER 4: SUPPLY AND DEMAND Recall: Microeconomics: The study of decision-making by firms and household, and results of those choices; scope is usually not larger than one market Macroeconomics: The study of the performance of the economy as a whole; includes unemployment, inflation, and aggregates or totals like GDP Plan: develop supply and demand analysis from microeconomics. Then, apply later to macroeconomics to improve understanding of fluctuations. Big Burgers in Athens P bb Q HH bb Draw a demand curve for the information in the table to the left. 5 0 4 1 How many Big Burgers will Harrison buy? 3 2 It depends on the price 2 3 How can we/did we determine the answer to the above question? 1 4 Follow the graph 0 5 How many big burgers will consumers demand in our very small market (comprised of two students and Harrison)? P bb Q HH bb Q student bb Q student bb Q total bb 5 0 1 2 3 4 1 2 4 7 3 2 3 6 11 2 3 5 8 16 1 4 7 15 26 Use the data above to construct a demand curve for a small market. price Quantity
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List two reasons why the demand curve is usually downward sloping. Law of demand- when the price of a good rises the quantity demanded usually decreases
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This note was uploaded on 04/02/2008 for the course ECON 2105 taught by Professor Rudbeck during the Spring '08 term at UGA.

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Supply and DEmand - CHAPTER 4: SUPPLY AND DEMAND Recall:...

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