Lecture 1 - Goals 3 Groups That We Will Be Studying 1....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Goals 3 Groups That We Will Be Studying 1. Consumers 2. Firms 3. Government Demand/Supply Curves, Market Equilibrium, Analysis Motivating Example: Oil Shock in 1970s—High Oil prices in 2000s When we compare the two, we see very similar things going on (high oil prices), What’s the difference? In the 1970s, OPEC didn’t export as much as we wanted. (Low Supply) Today, the high price comes from the high demand (i.e. China’s Industrialization takes a lot of oil, and so do SUVs). (High Demand) Demand Quantity demanded is the amount of a good that buyers are willing and able to purchase. (i.e. iPods—I may want three iPods, but I can’t afford three.) Law of Demand states that, other things equal , the quantity demanded of a good falls when the price of the good rises. ( Ceribus Paribus ) The Demand Curve is a graph of the relationship between the price of a good and the quantity demanded. The y-axis affects the x-axis when referring to the demand curve. It’s the opposite of math graphs. (Our graphs in Econ are wrong mathematically.) The x-axis is
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/09/2008 for the course ECON 2106 taught by Professor Minjaesong during the Fall '06 term at Georgia Institute of Technology.

Page1 / 3

Lecture 1 - Goals 3 Groups That We Will Be Studying 1....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online