ECON 201 1st Edition Lecture 3 I Examples from Tuesday s Lecture A Market for Hamburgers Mad cow disease scare change in taste demand shift down Equilibrium price and quantity decreased B Market for iPhones Price of Galaxy 5s goes down Change in demand shift down Price of a substitute good goes down Equilibrium price and quantity decreased C TT Super Shoe Market These 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 New technology that makes shoes twice as fast Change in supply supply shift up Reduction in cost to make shoes Produce more for less Equilibrium price goes down and quantity goes up D Market for Corn Tractor racing becomes the biggest sport in the US and you can win 1000s Change in supply shift down Opportunity cost to use tractor for corn goes up Opportunity cost shifts up Equilibrium quantity demand goes down prices goes up E Market for Packages of Beef Hotdog Price of hotdog buns increase exponentially Change in demand shift down Relative prices of other goods Price of complement goods changing Equilibrium quantity and price goes down F Market for Store Brand Lucky Charms Marshmellow Matey s Incomes Increase Marshmellow Matey s is an inferior goods Change in demand shift down Equilibrium quantity goes down price goes down G Market for Fancy Restaurant Dinner Incomes Increase Normal good Change in demand shift up Equilibrium price goes up and quantity goes up
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