Econ9.2 lecture 4

Econ9.2 lecture 4 - fininte level HOW MANY The quantity...

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

View Full Document Right Arrow Icon
Econ lecture 4  15:01 Supply and Demand interaction  Some public official who are concerned with rising gasoline prices o Proposal is to put a cap or a seal on the price o Demand and supply model suggest that if you cap the price of gasoline-  this will inc the $ of gas to most consumers Demand and supply eggs – X graph price-y qt –x intersection at .80  and 1,000 Sellers want to sell eggs but the prices are too high so the  consumers don’t purchase- and then there are more supply than  demand Then the prices will go down – increase in the quantity demanded  and a decrease in the quantity supply WHAT GOODS? Those goods where demand and supply intersect at a positive or a 
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: fininte level HOW MANY The quantity where supply and demands intersect (1,000) FOR WHO All those people whos little demand curves make up the market demand curve above .80 cents (intersection point) o Increase in demand will increase market price and increase quantity o Decrease in input cost increase in supply o Intersection of the demand curve and supply curve EQUILLIBRIUM [equal and balance] when there is no longer any forces acting on it to change. o It is ALWAYS the quantity sold is the quantity bought. Demand and supply determines labor services as well 15:01 15:01...
View Full Document

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.

Page1 / 3

Econ9.2 lecture 4 - fininte level HOW MANY The quantity...

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