E251.F11.W03.1.Elasticity

E251.F11.W03.1.Elasticity - ECON 251 Week 3.1 September...

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ECON 251 Week 3.1 September 06-07, 2011
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Review Markets are the interaction of buyers and sellers. Focus on buyers and sellers separately. Ceteris paribus : look at one thing at a time; All other things held equal.
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$ P x $ 10 $ 9 $ 8 $ 7 $ 6 $ 5 $ 4 $ 3 $ 2 $ 1 1 2 3 4 5 6 7 8 9 10 Demand x Demand shows the amounts purchased at alternative prices (horizontal distances at each price) Qty x /T D x D x Demand for X
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Supply Curve $Price $10 8 6 4 2 2 4 6 8 10 12 14 16 Qty x/ T
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$Price $ 4 3 2.50 2.00 1.50 1.00 .50 .25 100 200 300 400 500 600 700 800 900 1000 1100 Q x/ T Demand Supply Surplus at this $ Price
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$Price $ 4 3 2.50 2.00 1.50 1.00 .50 .25 100 200 300 400 500 600 700 800 900 1000 1100 Q x/ T Demand Supply Shortage at this $ Price
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$Price 4 3 2.50 2.00 1.50 Pe Pe 1.00 .50 .25 100 200 300 400 500 600 700 800 900 1000 1100 Q x/ T Qe Qe Demand Supply Market Equilibrium Market Equilibrium Qty D = Qty S
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$ P x $ 10 $ 9 $ 8 $ 7 $ 6 $ 5 $ 4 $ 3 $ 2 $ 1 1 2 3 4 5 6 7 8 9 10 11 12 Qty x /T Supply Demand D x Pe Qe Total Revenue = P X Q $6x5 = $30
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$ P x $ 10 $ 9 $ 8 $ 7 $ 6 $ 5 $ 4 $ 3 $ 2 $ 1 1 2 3 4 5 6 7 8 9 10 11 12 Qty x /T Supply Do D o S x Effects of Increase in Demand on Price and Quantity Increases Price and Quantity Pe Qe D 1 D 1
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This note was uploaded on 02/11/2012 for the course ECON 251 at USC.

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E251.F11.W03.1.Elasticity - ECON 251 Week 3.1 September...

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