Lecture 9

Lecture 9 - February 2, 2009 Section 4.2 & 4.3 Change...

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

View Full Document Right Arrow Icon
February 2, 2009 Change in quantity supplied – a change in the quantity of a good that suppliers plan to sell that results from a change in the price of the good Change in supply – change in the quantity that suppliers plan to sell when any influence on selling plans other than the price of the good changes If the price of a substitute falls, the curve shifts to the right. (even though it involves price, it is NOT the price of the good we are graphing) If price of an inputs (such as Laptops for selling A’s) increases, then the supply curve shifts left because it costs more If the number of sellers increases, the supply curve shifts right because there are more A’s now Graph: Quantity supplied > quantity demanded (surplus) Therefore, the sellers start to lower their prices Point of intersection is the best place If the price of a good were ridiculously low, there would be high demand, but little supply. Quantity demanded > Quantity Supplied (Shortage) Equilibrium is the point of intersection for demand & supply
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/29/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.

Page1 / 3

Lecture 9 - February 2, 2009 Section 4.2 & 4.3 Change...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online