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Unformatted text preview: Role of competition Scarcest resources are employed conservatively/sparingly – why? Type of markets in circular flow diagram “Consumer sovereignty” Pure Command Som: Information flows in pyramid model How do production objectives agree? Demand and Supply: Relationship b/t P and Qs, Q D Shape of Demand Curve Reasons for D curve to shift Substitute/complementary goods Normal goods/inferior goods Rationing function of prices Table (P, Q D , Q S ): Equilibrium Price Surplus/Shortage Effect of surplus/shortage Graph (D and S Curves, Various Prices) Equilibrium Surplus/shortage Highest price consumers willing to pay Table with Prices, Q D and Q S Seating capacity Surplus/shortage of tickets Ticket scalping...
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This note was uploaded on 10/21/2009 for the course INDV 103 taught by Professor Mcbrearty during the Spring '08 term at University of Arizona- Tucson.
- Spring '08