WashburnAugust 28, 2014Econ 101- TurchiAugust 28, 2014- Class 4PriceQuantityo A movement along a stationary supply curve is indicated by a change in quantity suppliedo Where both Demand and Supply schedule have the same price for the same quantity we find equilibriumo Any Price than is not at equilibrium is a disequilibrium pricePriceQuantityo Laws of Supply and Demando A rise in Demand for a commodity causes an increase in both the equilibrium price and the equilibrium quantity bought and soldo A fall in demand for a commodity causes a decrease in both the equilibrium price and the equilibrium quantity bought and soldo A rise in the supply of a commodity causes a decrease in the equilibrium price and an increase in the equilibrium quantity bought and solo A fall in supply of a commodity causes an increase in equilibrium price and a decrease in the equilibrium quantity bought and soldDisequilibriumEquilibriumDisequilibriumWashburnP1PP2S DQo Nixon price fixing caused excess demandPriceSDQuantityo Effects of inflation (above) on supply and demandSPDQo When a seller sells a commodity for a higher price than the fixed price, it is a black marketo Suppliers will make a cheaper product to get around price ceilings to avoid losing moneyo Foreign markets can move into and sweep the market when the quality drops too lowo Rent control in NYC led too Cheaper quality of buildingso Lack of maintenance in apartmentso Get rid of amenitiesExcess DemandWashburno Brings about a black marketo Government wants to restrict the amount of beef going to the private sectoro Rest of the meat goes to the militaryo Beef ChartS PDQP0Black Market
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