EC2013S11_L3

EC2013S11_L3 - ECON2013 Principles of Macro Lecture 3...

Info iconThis preview shows pages 1–14. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON2013 – Principles of Macro Lecture 3 Demand and Supply http://www.youtube.com/watch?v=GjMMSTF1-4U
Background image of page 1

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

View Full DocumentRight Arrow Icon
Today we talk about… 1. Demand and Supply Schedules 2. Shifts Along and Of the Curve 3. Market Equilibrium
Background image of page 2
Market Device • Invisible Hand of Adam Smith – People pursue own self-interest –“Led by an invisible hand” – Promote wellbeing of community
Background image of page 3

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

View Full DocumentRight Arrow Icon
Parking Permits Market • We study, as a simple example, the parking permits market in a small University Parking on campus is always expensive and difficult! Why? What does it depend on? We can use the same framework to study demand first and then supply.
Background image of page 4
A Small-Campus Model The Map of the Campus GYM H.R. BIO. & LABS ECON. Parking
Background image of page 5

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

View Full DocumentRight Arrow Icon
GYM H.R. BIO. & LABS ECON. Parking A Small-Campus Model Econ. Prof. Stacy John Charles Ana Paul Bio. Prof.
Background image of page 6
Preferences From Who Drive? Walk? Bike? Need Permit? Dorm Stacy Y Y Y $ Dorm John Y N Y $$ Dorm Charles Y Y N $$ House Ana Y N Y $$ House Paul Y N N $$$ City Center Econ. Prof. Y Y Y $ Suburbs Bio. Prof. Y N N $$$
Background image of page 7

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

View Full DocumentRight Arrow Icon
Demand Schedule From Who Need Permit? Dorm Stacy $ Dorm John $$ Dorm Charles $$ House Ana $$ House Paul $$$ Center City Econ. Prof. $ Suburbs Bio. Prof. $$$ Price Quantity Demanded 20 2 11 5 5 7
Background image of page 8
Demand Curve
Background image of page 9

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

View Full DocumentRight Arrow Icon
Demand and Quantity Demanded • Quantity demanded – Depends on price – Defined for a given Period of Time –“Other things being equal” Population size Consumer incomes Tastes Prices of other products
Background image of page 10
Changes In… • Change in price – Movement along demand curve • Change in other determinants – Shifts entire demand curve
Background image of page 11

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

View Full DocumentRight Arrow Icon
Demand Curve
Background image of page 12
From Who Need Permit? Dorm Stacy $ Dorm John $$ Dorm Charles $$ House Ana $$ House Paul $$$ Center City Econ. Prof. $ Suburbs Bio. Prof. $$$ Price Quantity Demanded 20 1 11 4 5 6
Background image of page 13

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

View Full DocumentRight Arrow Icon
Image of page 14
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 51

EC2013S11_L3 - ECON2013 Principles of Macro Lecture 3...

This preview shows document pages 1 - 14. Sign up to view the full document.

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