Information for a particular product what quantity

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Unformatted text preview: uct, what quantity will be offered for sale at each of many prices? Define market precisely • product characteristics • time period Make assumptions explicit Individual firm supply • • • • Market supply all input costs constant technology constant prices of related products constant # of sellers constant “Ceteris Paribus” = “holding all else constant” Paribus” constant” Demand Supply Supply Equilibrium Change of Equilibrium Demand Supply Supply Equilibrium Change of Equilibrium 3 2/1/2011 10:22 AM Supply Schedule 6-oz cups of chocolate-flavored chocolatefrozen yogurt! For each price (p), (p), what is the market quantity supplied (qS)? p Supply Curve qS p qS $1.00 $1.00 $2.00 $2.00 $3.00 $4.00 Supply Supply 50 ¢ $3.00 Demand 50 ¢ $4.00 Equilibrium Change of Equilibrium Demand p and qS are Directly Related Supply Supply Equilibrium Change of Equilibrium Changes in Supply Δ p Y MOVE ALONG curve Δ anything else Y SHIFT OF curve Terminology important! U Supply U Quantity Supplied Demand Supply Supply Equilibrium Change of Equilibrium Demand Supply Supply Equilibrium Change of Equilibrium 4 2/1/2011 10:22 AM Change in Input Costs cost of input Demand Supply Supply Change in Technology better technology Equilibrium Change of Equilibrium Demand Equilibrium Change of Equilibrium Change in # of Sellers Change in price of “related products” Substitutes in production (either – or) Supply Supply # of sellers price of substitute output Complements in production (by-products) (by price of complement output Demand Supply Supply Equilibrium Change of Equilibrium Deman...
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