gs_-08_--_B_-_Supply_and_demand_-3

gs_-08_--_B_-_Supply_and_demand_-3 - ANNOUNCEMENTS (#1):...

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1 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. ± 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. 5, 2009 Econ 11 - Lecture #8 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 has been posted in UVLE. Dec. 5, 2009 Econ 11 - Lecture #8 3 LECTURE #8: SUPPLY AND DEMAND ± FACTORS AFFECTING o DEMAND o SUPPLY ± APPLICATIONS OF SUPPLY & DEMAND ± #1: SALES REVENUE AND ELASTICITY ± #2: SALES TAXATION
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2 Dec. 5, 2009 Econ 11 - Lecture #8 4 FACTORS THAT AFFECT DEMAND ± Preference patterns ± Income level ± Income distribution ± Population size ± Natural events ± Expectations ± External events Dec. 5, 2009 Econ 11 - Lecture #8 5 (A) Preference patterns (#1) ± History, culture, national and regional traditions ± Climatic– e.g., clothes in tropics are lighter than in temperate regions Dec. 5, 2009 Econ 11 - Lecture #8 6 (A) Preference patterns (#2) ± Geographic – Question : Why is there a demand for sea-going vessels in the Philippines and none in Nepal? ± Fads and fashions – temporary and of different durations ± Etc.
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3 Dec. 5, 2009 Econ 11 - Lecture #8 7 (B) Income level ± The higher the income level, the higher is the level of demand. ± Question : If all other things are equal and Country A has higher income than Country B, the demand for the good (Food, Clothing etc.) will be higher in Country A. Dec. 5, 2009 Econ 11 - Lecture #8 8 (C) INCOME DISTRIBUTION Definition : The share that income classes have in relation to the total income of the economy within a society. Example : Comparison of the share of rich, middle income, and poor income groups to total output in society. Dec. 5, 2009 Econ 11 - Lecture #8 9 (C) Income distribution (#1) ± The more equal is the level of income distribution, the more similar would be the level of demand for particular types of goods. ± The more unequal is the level of income distribution, the more varied is the level of demand for particular types of goods.
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4 Dec. 5, 2009 Econ 11 - Lecture #8 10 (C) Income distribution (#2) ± Question : Analyze the implications of these statements to what we call: “basic goods” or necessities.
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This note was uploaded on 04/18/2010 for the course SE 67256 taught by Professor Dr.gerardosicat during the Spring '10 term at University of the Philippines Diliman.

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gs_-08_--_B_-_Supply_and_demand_-3 - ANNOUNCEMENTS (#1):...

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