gs_-07_--_A_-_Supply_and_demand_-2

gs_-07_--_A_-_Supply_and_demand_-2 - ANNOUNCEMENTS (#1):...

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ANNOUNCEMENTS (#1): ± Tests will be held at 7:30 am to 9:00 am , during normal lecture days on Wednesdays. Rooms will be announced later. ± Look for the coverage of specific exams from the Course Syllabus. ± SCHEDULE OF EXAMS (Tentative): o TEST #1 – Dec. 11(Friday) o TEST #2 – last week January, 2008 (tentative -- TBA) o TEST #3 – last week February, 2008 (TBA) o FINAL EXAM – Announced during FINAL EXAM WEEK Dec. 3, 2009 Econ 11 -- Lecture #7 2 ANNOUNCEMENTS (#2): Examples of TEST QUESTIONS in the previous semesters and years are available at the reserve section of the UP School of Economics LIBRARY. A recent exam will be posted in UVLE. Dec. 3, 2009 Econ 11 -- Lecture #7 3 Lecture #7: SUPPLY & DEMAND ± ELASTICITY AND ITS MEANING ± SHIFTS (CHANGES) IN DEMAND AND SUPPLY ± DEMAND AND SUPPLY IN EQUILIBRIUM ± CHANGES IN MARKET S&D AND WHAT HAPPENS TO PRICE AND QUANTITY
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Dec. 3, 2009 Econ 11 -- Lecture #7 4 C a s e P per Q Q A 50 15 B 40 23 C 30 31 D 20 39 E 10 47 DEMAND SCHEDULE 10 20 30 40 50 50 40 30 20 10 0 PRICE QUANTITY Dec. 3, 2009 Econ 11 -- Lecture #7 5 THE CONCEPT OF ELASTICITY – response of quantity sold to a change in the price of the good FORMULA FOR ELASTICITY Q Percent change of Quantity Q P Percent change of Price P Elasticity Δ == Δ
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Dec. 3, 2009 Econ 11 -- Lecture #7 7 39 20 D 47 10 E 31 30 C 23 40 B 15 50 A D P per Q C a s e DEMAND SCHEDULE 10 20 30 40 50 50 40 30 20 10 0 PRICE QUANTITY A B C D E Lower P More Q P=Change in Price P=Base Price Q=Change in Quantity Q=Base Quantity Δ Δ Dec. 3, 2009 Calculate elasticity between points C and D ± Change in Price = -10 (from 30 to 20).
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gs_-07_--_A_-_Supply_and_demand_-2 - ANNOUNCEMENTS (#1):...

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