Menu_02_Feb_11

Menu_02_Feb_11 - b. Other input costs (-) c. Productivity...

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TODAY’S MENU: Wednesday 02 February 2011 I. BUSINESS A . Practice Problems 1. Chapter 4: 1, 3-7, 10-20, 22 B. First Exam: One week from Monday (14 February) II. SUBSTANCE A. Buyers’ side of market: Demand 1. Determinants of Demand a. Income b. Price of related goods c. Tastes and preferences d. Expectations i. Future price (+) ii. Future income: normal good (+); inferior good (-) e. Number of buyers (+) 2. Graphically a. Change in Quantity Demanded: movement along curve b. Change in Demand: shift of entire curve B. Sellers’ side of market: Supply 1. Definition 2. Not to be confused with Quantity Supplied 3. Determinant of Quantity Supplied a. Price of good (+) i. Link with Reservation Price 4. Determinants of Supply a. Cost of labor (i.e., wages, benefits) (-)
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Unformatted text preview: b. Other input costs (-) c. Productivity (+) d. Expectations i. Future price (-) e. Number of sellers (+) 5. Graphically a. Change in Quantity Supplied: movement along curve b. Change in Supply: Shift of entire curve C. Market Equilibrium and Disequilibrium 1. Equilibrium: quantity supplied = quantity demanded 2. Disequilibrium a. Excess supply: Surplus b. Excess demand: Shortage c. Return to equilibrium D. The Method 1. Who is directly affected? 2. How does behavior change? 3. What is the result? E. Examples III. NEXT TIME A. Chapter 5: “Using Supply and Demand” B. Begin Chapter 7: “Describing Supply and Demand: Elasticities”...
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This note was uploaded on 05/12/2011 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.

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Menu_02_Feb_11 - b. Other input costs (-) c. Productivity...

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