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Unformatted text preview: Q = -2P-.01M+5P o , Q/P = -2, Q/M = -0.1 (therefore an inferior good), P/P o = +5>0 this is a complement/substitute?*** Equilibrium people are content, the result will stay, where neither side is willing to change Competitive equilibrium (the intersection between supply and demand curves) Excess supply causes surplus causes competition among producers causes lower prices Excess demand causes competition among the buyers that causes prices to go up demand goes up (apple example)...
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This note was uploaded on 07/05/2011 for the course ECON 1 taught by Professor Nagata during the Spring '08 term at UCLA.
- Spring '08