econ100_wntr2010_lec1_topost

econ100_wntr2010_lec1_topost - Overview Review Supply...

Info icon This preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Overview & Review: Supply & Demand
Image of page 1

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

View Full Document Right Arrow Icon
Macroeconomics (Unemployment, GDP, Overall Economic Performance) Supply & Demand at Market Level: Equilibrium Prices and Quantities, Comparative Statics Individual Behavior (Microeconomic Foundations)
Image of page 2
Supply & Demand Consider supply and demand curves for goods and the equilibrium determined by their interaction Demand function: summarizes relationship between quantity demanded and price (holding all else constant) Supply function: Summarizes relationship between quantity of a good supplied and price (holding all else constant)
Image of page 3

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

View Full Document Right Arrow Icon
Demand function can give Price as a function of quantity(―inverse demand‖) Quantity as a function of price Relates P & Q, all else held constant Holds constant all OTHER factors (income, tastes, prices of other goods, population) Ex: Demand for laptop computers
Image of page 4
What can SHIFT the demand curve? Income (average and distribution) Higher demand for laptops as income rises Prices of other goods Price of notebook, desktop computers Tastes/Preferences Prefer to work/play at home, at school, etc. Population Market demand depends on how many in market Expectations Expect better quality laptops soon, reductions in P
Image of page 5

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

View Full Document Right Arrow Icon
Demand Curve P Q D=Q(P;P x ,I,T,Pop,Exp)
Image of page 6
Demand Curve with Increase in Income I’ > I P Q D=Q(P;I) Q(P;I’)
Image of page 7

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

View Full Document Right Arrow Icon
Price of ―other‖ goods Substitutes : increase in the price of A leads to an INCREASE in the quantity demanded of B (A and B are substitutes) Desktop, notebook computers, PDAs Complements
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the 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