Econ 101 1st Edition Lecture 6 Outline of Last Lecture I. The Demand CurveII. 4.4 Market effects of changes in demandIII. 4.2 The supply curveOutline of Current Lecture II. 4.5 Market Effects of changes in supplyIII. 4.3 Market Equilibrium: Bringing Demand and Supply together (cont.)IV. 4.6 Predicting and explaining market changesCurrent LectureI. 4.5 Market Effects of changes in supplya. The Individual Supply Curve and the Law of Supplyi. Supply: Thinking at the margin Marginal cost (opportunity cost)ii.iii. Graph 11. Ceteris Paribus2. If P firms an afford to Q (costs ) – minimum P as Qiv. Graph 21. At any P Q (more ovens, more firms)2. P at any Q (QD)3. At any Q costsII. 4.3 Market Equilibrium: Bringing Demand and Supply together (cont.)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.a.i. Blue line: max P is willing to payii. Red line: minimum P can acceptiii. Supply (Marginal cost)iv. Demand (Marginal benefit (utility))v. Lower than 8 on the y-axis means that at 30k pizzas a firm has regretsvi. Higher than 8 on the y-axis means that at 30k pizzas a consumer has regretvii. 32k unsold pizzas (Q MC )b. Increase in Supply Shift the Supply Curvec. Decreases in supply shit the supply curved. Market Equilibrium: a situation in which the quantity demanded equals the quantity supplied at the prevailing market pricee. Excess demand (shortage): A situation in which, at the prevailing price, the quantity demanded exceeds the quantity suppliedf. Excess supply (surplus): a situation in which the quantity supplied exceeds the quantity demanded at the prevailing priceIII. 4.6 Predicting and explaining market changesa.i. The basics ^^^b. For the exam know how to find which curve
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