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

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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 
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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...
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