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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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This note was uploaded on 10/30/2012 for the course BUS 420 taught by Professor Thisal during the Fall '11 term at Arizona.

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