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...
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- Spring '10
- Supply And Demand, demand curves c.e.t., equilibrium line prediction, Profit=P-SC Market Supply, competitive eq. theory