SC ECON 222 - Supply and Demand (2 pages)

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Supply and Demand



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Supply and Demand

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A review of microeconomics and defining supply and demand


Lecture number:
1
Pages:
2
Type:
Lecture Note
School:
University Of South Carolina-Columbia
Course:
Econ 222 - Prin of Macroeconomics
Unformatted text preview:

Econ 222 1st Edition Lecture 1 Outline of Current Lecture I What is Economics Micro vs Macro II Supply and Demand As defined in Econ 221 III Definitions of related terms Current Lecture I What is Economics We define Economics as the study of scarcity In Micro Economics we look at the individual making a decision contrary to that In Econ 222 otherwise known as Macro Economics we look at the economy as whole and decision making based off of that Some Questions that might be asked throughout Macro Economics would include 1 Why are some countries richer or poorer than others 2 What is inflation and what causes it II Supply and Demand Demand D The height of the Demand Curve represents the maximum willingness to pay for a good or service The demand line is always downward sloping Be sure to Label the line as D D 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 What determines Demand 1 2 3 4 5 Price of the Good Preferences Price of other goods Income Wealth Expectations Supply S The minimum willingness to accept for any good or service S What determines Supply 1 Costs of the inputs 2 Price of the good 3 Price of related products the more options you have the higher your minimum to accept is III Related Terms Substitutes Pepsi is a substitute for coke Compliments Goods that go together like peanut butter and jelly Comparative Advantage Theory that defines why we trade States that whoever has the lowest opportunity cost is the person who should produce a good or service


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