4 - Econ:1/4/11 17:02

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Econ: 1/4/11 17:02 The Story of Dave Pelz: golfer, who wanted to join the PGA. Studied physics at  Indiana. Experiments : Isolate the role of some factors by controlling other factors What goes on in a market? Some people want to buy, some want to sell Buyers meet sellers, exchange money for goods and services  Money exchanged is called a price Buyers: want a low price and have a maximum willing to pay Sellers: want a high price and have a minimum willing to accept Mins and maxs are not easily observable What would Dave do? Pin down the mins and maxs, control objectives of market participants Study: Who buys and sells and the price at which they pay. The Farmers’ Apple market: Buying and selling bushels of apples Personal ID sheets Experiments: 
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You are an apple seller and your seller cost is $10. If you sell a bushel of  apples for a price $P, your profit is $P-$10. If you don’t sell any apples, your 
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4 - Econ:1/4/11 17:02

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