midterm - ECON 205 CHAPTER 3 What is appreciation? What is...

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ECON 205 CHAPTER 3 What is appreciation? What is depreciation? The citrus paribus determines the law of demand The lower the prices, the more the quantity you will buy Price vs Quantity has an inverse relationship The Major Citrus Paribus: 1.Income 2.Taste 3.Substitutions These must be fixed Pg 52-53 Pg 57 Shifting the demand curve, a change in the citrus paribus Normal an inferior _G 58 LAW of supply As the price goes up, the more will go on the market for sale The higher the prices, the higher the supply It’s a direct relationship Assume citrus paribus Major Citrus paribu for supply: 1 Taxes 2.Cash Subsidies 3.technology price Ceiling- Maximum price that is below the equilbrium price Price Floor- What ar ehte consequences of a price ceiling or a price floor? Consequences of a shortage, it will lead to the black market
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What is the meaning the equilirium and the market prices? What is price flow? What is price ceiling?
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This note was uploaded on 12/01/2009 for the course EASC 150g taught by Professor Rosen during the Fall '07 term at USC.

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midterm - ECON 205 CHAPTER 3 What is appreciation? What is...

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