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Unformatted text preview: negative numbers Inelastic vs Elastic
Ey>0 normal good Ey<0 inferior good
Royal order of Tanstaa”F”L
There are four steps in figuring out supple and demand graphs:
1. Don’t think!
2. Which curve is affected and why?
3. Is it an increase of a decrease?
Just draw it 21:15 Consumer and Supplier Surplus 21:15 Price takers are those sellers who are willing to take the equilibrium price
Price Searchers are those sellers who are trying to find the highest price to sell in the market place. Price Ceilings and Price Floors
When quantity demanded is greater than the quantity supplied there is a shortage.
Price Ceiling: the highest possible price allowed by government Price Floors:...
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