E303lect15F09 - 25 September 2009 Reading Baye Ch 3 pp...

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25 September 2009 Reading Baye, Ch 3. pp 73-82 (Next time) Exam: Monday Oct. 5 Collect Problem Set #4. Problem Set #5 on Blackboard Lecture 15 REVIEW___________________________________________________: II. Chapter Market Forces: Demand and Supply 2. Comparative Statics a. Single Market interactions i. Supply or Demand Shift ii. Supply and Demand Shifts PREVIEW ________________________________________________ 2. Multi market interactions. III. Quantitative Demand Analysis A. Price Elasticity of Demand 1. Motivation 2. Calculation a. Arc price elasticity of demand. LECTURE______________________________________________________ 2. Multi market interactions . It is important to observe that events occurring in one market can impact on other markets. Changes in the price of automobiles, for example, can affect the price and quantities of tires sold. Many, many of these effects occur all the time, and sometimes their effects are conflicting and in other instances reinforcing. It would be well to view the process of analyzing comparative statics effects more as a rock tossed into a pond in a rainstorm, than a pebble dropped into the same pond on a placid summer day. Here, I would like you to be able to recognize
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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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E303lect15F09 - 25 September 2009 Reading Baye Ch 3 pp...

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