ECON 1051 1ST Edition Lecture 9 Outline of Last Lecture I. Things To Know About DemandII. Law of Demand III. Variables that Change Market Demand Outline of Current Lecture I. Shift In Demand II. The Supply Side of the Market III. Variables That Shift Market Supply Current LectureI. Shift In Demand a. Shift of demand curve: i. A shift of a demand curve is an increase or decrease in demand1. A shift right means there was an increase in demand2. A shift left means there was a decrease in demanii. Example: 1. What would happen to the demand for iPhones if Samsung Galaxybecame more expensive and Sprint offers better plans with iPhones? a. A shift to the right would occur in the demand for iPhones since the demand for iPhones would increase b. Movement along demand curve: i. A movement along a demand curve is an increase or decrease in quantity demandc. Ceteris Paribusi. Holding all variables other than price constant ii. Latin for “all else equal” II. The Supply Side of the Market a. Supply Schedules and Curvesi. Quantity Supplied1. Amount a firm is willing and able to supply at a given priceii. Supply Schedule1. Table that shows the relationship between the price and quantity suppliedThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.iii. Supply Curve1. Curve that shows the relationship between the price and quantity supplied 2. Positive relationship because firms want to sell more for more money iv. Law of Supply1. The idea the holding everything else constant, increases in price causes increases in the quantity supplied and vice versa III. Variables That Shift Market Supply a. Price of Inputs i. A change in the price of things that go into producing a productb. Technological Changei. Positive or negative change in the ability to produce a given level of output with a given quantity of inputs c. Prices of Substitutes in Productioni. Example:1. A farmer can grow corn or wheat. The price of corn is expected to be very high next year. What would he do?a. He would plant more corn and supply less wheat since he’llget more money for cornd. Number of Firms in the Market i. The more firms there are, the more supply there will bee. Expected Future Pricesi. If price will be higher in the future, a firm has an incentive to decrease supply now and increase it in the
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