SOC 101 1ST Edition Lecture 7 Outline of Last Lecture I. Prices of Related GoodsA. SubstitutesB. Complements II. Changes In DemandA. Change in quantity demandedB. Change in demand II. Expectations (demand shifter) III. Supply Shifters IV. Surplus V. Shortage Outline of Current Lecture I. EquilibriumII. Price CeilingIII. Price FloorCurrent LectureEquilibrium- When quantity supplied = quantity demanded- Demand inc., supply stays the same, EQ. price & quantity inc.- Demand dec., supply stays the same, EQ. price & quantity dec.- Supply inc., demand stays the same, EQ. price dec. & quantity inc.- Supply dec., demand stays the same, EQ. price inc. & quantity dec. - EQ. price inc. when demand is greater than supply- EQ. price dec. when supply is greater than demand- EQ. quantity shifts with both supply and demand when they are equal- Market outcome - Market clearance Price Ceiling- The maximum price allowed- Government helps buyers- Shortage occursPrice Floor- The minimum price allowedThese 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.- Government helps sellers- Surplus
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