PPTChapter1though3

PPTChapter1though3 - Managerial Economics Dr. Cliff Hawley...

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Prof. Clifford B. Hawley Managerial Economics Dr. Cliff Hawley BADM 631 Demand, Supply, Elasticities and Markets (Chapters 1, 2 and 3)
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Prof. Clifford B. Hawley Major Topics 1. Mathematics review 2. Demand determinants 3. Supply determinants 4. Market Equilibrium 5. CS, PS and the Social Gain (SG) 6. Price ceilings and price floors 7. Demand elasticities a. Own Price b. Income c. Cross price
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Prof. Clifford B. Hawley Math Review 1. The equation of a line: Y= a + bX -- the concept of the slope ---the concept of the y-intercept ---graphing an equation 2. Solving two (linear) equations in two unknowns 3. the area of a rectangle : Area = wh 4. the area of a triangle: Area = wh/2
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Prof. Clifford B. Hawley Managerial Economics Definition: Managerial Economics is the application of economic theory and the tools of analysis of the decision sciences to examine how an organization or decision-maker can achieve its aims or objectives efficiently.
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Prof. Clifford B. Hawley Market Exchange A Market is a collection of buyers and sellers. Their interaction of buyers and sellers determines prices quantities bought and sold
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Prof. Clifford B. Hawley The Gains from Market Exchange Consumer Surplus (CS) -- difference between maximum price one would pay and price actually paid Producer Surplus (PS) -- difference between price received and minimum price one would take to supply good or service. The sum of all gains or surpluses in a market is called Social Gain (SG)
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Prof. Clifford B. Hawley Market Demand Curve Shows the amount of a good or service that will be purchased at each price. Quantit y Demand Price
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Prof. Clifford B.
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PPTChapter1though3 - Managerial Economics Dr. Cliff Hawley...

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