This preview shows page 1. Sign up to view the full content.
Unformatted text preview: o this might be the cost of producing apples o could be the value of keeping apples for oneself-opportunity cost o profits of seller=price-seller cost o profits of buyer=buyer value-price drawing supply and demand curves [online] o first step-find distribution of buyer values and seller costs o this will be with the experimental data for your section o equilibrium line prediction and observation o prediction: what predicted o observation: real world o good theory predicts events in the lab and in the real world...
View Full Document
- Spring '10
- Supply And Demand