Menu_31_Jan_11

Menu_31_Jan_11 - i. Substitutes: Increase price (+) ii....

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TODAY’S MENU: Monday 31 January 2011 I. BUSINESS A . Practice Problems 1. Chapter 4: 1, 3-7, 10-20, 22 B. First Exam: Two weeks from today (14 February) II. SUBSTANCE A. How Trade Can Benefit All: An example 1. Conclusions B. Buyers’ side of market: Demand 1. Definition 2. Not to be confused with Quantity Demanded 3. Determinant of Quantity Demanded a. Price of good (-) i. Link with Reservation Price 4. Determinants of Demand a. Income i. Normal good (+) ii. Inferior good (-) b. Price of related goods in consumption
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Unformatted text preview: i. Substitutes: Increase price (+) ii. Complements: Increase price (-) c. Tastes and preferences (+) d. Expectations i. Future price (+) ii. Future income: normal good (+); inferior good (-) e. Number of buyers (+) 5. Graphically a. Change in Quantity Demanded: movement along curve b. Change in Demand: shift of entire curve III. NEXT TIME A. Finish Chapter 4: Supply and Demand...
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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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