LecE2Friday

# LecE2Friday - 2. Becomes flatter. 3. Becomes steeper. 4....

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Clicker Check-in Survey: Do you own an Ipod? 0% 0% 1. Yes 2. No

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A demander with Buyer Value \$50 buys an object from a supplier with Seller Cost \$20. The sum of the buyer’s and the seller’s profit is: t h e . c s r b o v 0% 0% 0% 0% 1. larger, the greater the price. 2. the same at all prices between \$20 and \$50. 3. smaller, the greater the price. 4. None of the above.
Why is that? Buyer’s profit=BV-Price Seller’s Profit =Price –SC Buyers Profit +Seller’s profit= (BV-Price)+(Price-SC)=BV-SC So sum of buyer’s and seller profit is BV-SC regardless of price.

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And on to our main lecture…
If more fish are caught on Day 2 than on Day 1, then between Day 1 and Day 2, the supply curve h i f t s o e r g . B c m l a p S v y 0% 0% 0% 0% 0% 1. Shifts to the right.

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Unformatted text preview: 2. Becomes flatter. 3. Becomes steeper. 4. Shifts to the left 5 Shifts vertically Sunk costs are costs that do not change with the number of units sold. T r u e F a l s 0% 0% 1. True 2. False If the price of gasoline doubles, but the number of fish caught stays the same, happens to the equilibrium price of fish? o t . s a m e u b l 0% 0% 0% 1. It will go up, but not quite double. 2. It will stay the same. 3. It will exactly double. And now back to our lecture...
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## This note was uploaded on 12/25/2011 for the course ECON 1 taught by Professor Bergstrom during the Fall '07 term at UCSB.

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LecE2Friday - 2. Becomes flatter. 3. Becomes steeper. 4....

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