C2-4ComparativeStatics_ECON303_20101_2010-01-02

C2-4ComparativeStati - Comparative Statics Chapter 2 Supply and Demand ECON 303 Managerial Economics Spring 2010 Edward L Millner Department of

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Comparative Statics Chapter 2 – Supply and Demand ECON 303 Managerial Economics, Spring 2010 Edward L. Millner , Department of Economics Copyright Millner 2009-10 Before class 7 Read the Learning Objectives for this chapter 8 Organize your notes from the previous class. Studies show that if you review and organize your notes the day you take them you will retain 80% of the information for 8 weeks. 9 Read the review material. 10 Write down answers to the Review Questions that are due. Be ready to submit your answers with your “clicker” at 11:00. 11 Work on each of the Lecture Problems . Read the notes linked to them and the pages in the book that the notes reference. Pay close attention to the demonstration problems in the book. Jot down an answer, an outline to an answer, the beginning of an answer, or “I am lost”, next to each question. Be ready to read aloud upon request what you have written. 12 Read what is next . Click here to return to the top of the file. Learning Objectives The student will understand that markets respond predictably to changes in supply and/or demand. Demonstrable outcomes are the abilities to: use supply and demand to explain, predict, and portray changes in quantity demanded, demand, quantity supplied, supply, equilibrium price, equilibrium quantity, shortages, and surpluses. Review Review pp. 52-54 13 The equilibrium price equates the quantity demanded and the quantity supplied. The intersection of the demand and supply curves indicates the equilibrium price and quantity. Click here to return to the top of the file.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Lecture Problems Question 9, p. 68 You are the manager of a midsized company that assembles personal computers. You purchase most components – such as random access memory (RAM) – in a competitive market. Based on your marketing research, consumers earning over $75,000 purchase 1.3 times more RAM than consumers with lower incomes. One morning, you pick up a copy of The Wall Street Journal and read an article indicating that a new technological breakthrough will permit manufacturers to produce RAM at a lower unit cost. Based on this information, what can you expect to happen to the price you pay for random access memory? Would your answer change if, in addition to this technological breakthrough, the article indicated that consumer incomes are expected to grow over the next two years as the economy pulls out of recession? Explain. I would expect to pay less for the RAM as the Supply curve shifts right (increase).
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/04/2010 for the course ECON 303 taught by Professor Shrestha during the Fall '08 term at VCU.

Page1 / 6

C2-4ComparativeStati - Comparative Statics Chapter 2 Supply and Demand ECON 303 Managerial Economics Spring 2010 Edward L Millner Department of

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online