06-market eq jpw - Lecture 6-PREVIEW Market Equilibrium Dr....

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microL6-S2010- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Lecture 6-PREVIEW Market Equilibrium Dr. Jennifer P. Wissink ©2009 John M. Abowd and Jennifer P. Wissink, all rights reserved. February 10, 2010
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microL6-S2010- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ Suspended animation (the art market) http://www.economist.com/specialreports/displaystory.cfm?stor Diversity training (developing countries and trade) http://www.economist.com/businessfinance/economicsfocus/dis Greek Civil Servants Strike Over Austerity Measures http://www.nytimes.com/2010/02/11/world/europe/11greece.html? European Debt Issue. .. http://www.nytimes.com/2010/02/10/world/europe/10union.html?r
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microL6-S2010- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ The Supply Function The supply function for X: Q X S = g(P X , P fop , P oc Where: Q X S = maximum quantity that sellers are willing and able to sell P X = X’s price P fop = the price of factors of production P oc = the opportunity costs N = number of firms in the market
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microL6-S2010- http://www.arts.cornell.edu/econ/wissink/econ1110jpw/ The Supply Curve The supply curve, a.k.a. supply, describes the relation between a good’s price and the maximum quantity that sellers are willing and able to put on the market for sale at that price, ceteris paribus. Ceteris paribus means holding all the other supply function variables constant at some given level. – Q X S = g(P X ) given P fop , P oc The “ The Law of Supply” the relationship between a good’s price and the quantity supplied of the good is positive. » higher prices generate higher quantities supplied
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06-market eq jpw - Lecture 6-PREVIEW Market Equilibrium Dr....

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