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Unformatted text preview: Econ Lecture 6 9.9 15:10 Secondary Effects Concurrent demand and supply shifts Movement in demand and supply at the same time Increase in demand and decrease in supply o Price is going to go up o Push prices up Is the objective is to depress the price of timber o Either shift decrease- demand or increase supply Cost price illusion fallacy price is formed by the interaction of demand and supply doesnt mean one plays a larger role than another o Which one is more important ? Alfred marshall both blades of the scissor helpful to think that both demand and supply does the cutting Work jointly to determine and influence prices What is preventing the market from clearing o Disequilibrium prices market does not clear at either price If the demand and supply curve doesnt shift price is at rest and shouldnt be...
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This note was uploaded on 01/19/2011 for the course ECON 2005 taught by Professor Zirkle during the Fall '07 term at Virginia Tech.
- Fall '07