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Unformatted text preview: accept. In general, a seller's W2A will be equal to her opportunity cost of selling the object: the amount of benefit she gives up when she hands the object over to someone else. In the example above, the seller is getting $4000 of benefits from the owning car and will give that up if she sells it. She'll need to be paid at least $4000 to hand over the keys. The supply curve for a good is a graphical representation of the prices that individuals or firms are willingness to accept when selling the good. Conceptually, it is constructed as follows: (1) start with a low price; (2) ask all potential sellers how many items they would be willing to sell at that price; (3) mark that price and quantity on a graph; (4) increase the price slightly and repeat the process....
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This note was uploaded on 04/03/2012 for the course ECN 437 taught by Professor Peterwilcoxen during the Spring '12 term at Syracuse.
- Spring '12