E303lect13F09

E303lect13F09 - September 21, 2009 Reading Baye, 54-62...

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September 21, 2009 Reading Baye, 54-62 (Today) Problem Set #4 due Friday Lecture 13 REVIEW___________________________________________________: II. Chapter Market Forces: Demand and Supply C. Supply 4. Changes in Supply vs. Changes in Qty. Supplied 5. Producer Surplus D. Equilibrium. Putting Supply and Demand Together 1. Definition. 2. Properties of equilibrium a. Stability (the market tends to equilibrium) PREVIEW________________________________________________ b. Welfare Maximization 3. Binding the market. a. Price floors LECTURE______________________________________________________ b. The optimality of equilibrium. Our assumptions about competitive markets rest on three assumptions. 1) No market power . No single buyer or seller can unilaterally manipulate the price. 2) Full information. Buyers have full information regarding product quality, availability and price. Sellers have full information regarding the technology of production. 3)
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This note was uploaded on 04/12/2010 for the course ECON 303 taught by Professor Shrestha during the Fall '08 term at VCU.

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E303lect13F09 - September 21, 2009 Reading Baye, 54-62...

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