Outline for Lecture 1
The Economic Perspective
How do we define economics as a social science?
Economics studies how individuals and institutions (business firms, governments, etc.) make the
best choices in allocating limited resources over unlimited need
Outline for Lecture 3
How do we define the supply of a commodity?
-Supply of a commodity is determined by a producers willingness and ability to make products
available for sale in a specific period.
Law of Supply
Figure 3.4 presents data on the su
Outline for Lecture 5
Price Elasticity of Demand
How do we define price elasticity of demand?
-Price elasticity can be defined as a consumers sensitivity to a price change.
The Price Elasticity Coefficient and Formula
How do we measure price elasticity of
Outline for Lecture 4
In Figure 3.6, how do we obtain equilibrium in the market for corn? What is equilibrium price?
What is quantity transacted (demanded and supplied) at that price?
-You get the equilibrium by taking the demand curve
Outline for Lecture 2
How do we define the demand for a commodity?
-It can be defined as a customers willingness and ability to purchase for a specified amount of
time. The quantities demanded at each price must be specific to a period of time.