ps006 - Doesdemandeveraffectsupply?

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1 Does demand ever affect supply? In this exercise, we would like students to think about  the conditions under which demand may or may not  affect supply.   Here is what I expect you to do: Modify the context.  That is, create a new example  of your own, similar to supplied example. 
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2 Does demand ever affect supply? D S P Q
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3 The markets of Olympics tickets and Olympics  athletes Is the cost of a ticket to the Olympics game so high because the  salaries of Olympics athletes is so high? Partly.  But then why are the wages of Olympics athletes so high?   Because so many people are willing to pay so much to be able to  watch them. Thus, to determine the cost of Olympics game tickets, we need to  consider the two markets together: Olympics game ticket market (determines the price of tickets) The labor market of Olympics athletes(determines the wages)
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This note was uploaded on 09/06/2010 for the course FBE ECON1001 taught by Professor Dr.demurger during the Fall '08 term at HKU.

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ps006 - Doesdemandeveraffectsupply?

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