ECON 2000 1st Edition Lecture 7Outline of Last Lecture XXII. Demanda. Demandb. Quantity Demandc. Demand Scheduled. Law of DemandXXIII. Changes in Demand (figure 1)a. Change in Demandb. Change in Quantity DemandXXIV. Determinants (MEMORIZE)a. Demandb. Quantity DemandXXV. Change of price in related goodsa. Substitute goodb. Complementary goodOutline of Current Lecture XXVI. Supplya. Supplyb. Quantity supplyc. Law of SupplyXXVII. Changes in supplya. Change in supplyb. Change in Quantity SuppliedXXVIII. Determinants (MEMORIZE) a. Supplyb. Quantity SuppliedXXIX. Market Balancea. EquilibriumThese 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.b. Shortagec. SurplusCurrent LectureXXVI. Supplya. Supplyi. The amount of a good or service that firms are both willing and able to offer for sale at any possible priceb. Quantity supplyi. The amount of a good or service that firms are both willing and able to offer for sale at a specific pricec. Law of Supplyi. From a firms point of view, higher prices encourage production (Raising quantity supplied), and lower prices discourage production (lowering Qs)1. Firms want more people to buy at higher pricesXXVII. Changes in supplya. Change in supplyi. Entire Curve shifts2. Left for decrease3. Right for increaseb. Change in Quantity Suppliedi. Movement along existing supply curveii. Up and right: Increaseiii. Down and left: decreaseXXVIII. Determinants (MEMORIZE) a. Supplyi. Change in production costsii. Govt raise taxes/ subsidiesiii. Change in technology/ productivityiv. Change in producers future expectationsv. Change in number of producersb. Quantity Suppliedi. Change in PriceXXIX. Market Balancea. Equilibriumi. The point in which the price people are willing and able to pay is exactly the same as what firms are willing and able to sellii. Qd = Qs b. Shortagei. The amount consumers are willing and able to buy is more than the amount sellers are willing and able to sellii. Qd > Qsc. Surplusi. The amount consumers are willing and able to buy is less than the amount sellers are willing and able to sellii. Qs >
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