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Unformatted text preview: 1 Section Handout Week 1 Outline 1. Introductions 2. Course/Section expectations 3. Review of essentials Econ Essentials Review Today well briefly review the essential math and graphs that will be used in the class. Basi- cally this should give you an idea of what you need to recall from your previous microeconomics courses (although by no means complete coverage). 1. Graph the demand function P = 100- 2 Q and the supply function P = 10 + Q . 2. Whats the market equilibrium? Recall that the market equilibrium is the point where the forces of the market (producers supply and consumers demand) converge. Intu- itively, this means that at any other point either excess demand would drive prices up or excess supply would drive prices down. Graphically, this is of course where demand intersects supply. Q eq = P eq = 3. Whats consumer and producer surplus? Recall that consumer surplus is the area under the demand curve (total benefit) but above the price (the area below which represents...
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- Spring '09