Unit 5. Tastes and Demand Choice. Economics - 6th year EURSC 2007/2008. Economics - 6th year (EURSC) Unit / / 23
|
|
- Laurence Stokes
- 6 years ago
- Views:
Transcription
1 Unit 5 Tastes and Demand Choice Economics - th year EURSC 007/00 Economics - th year (EURSC) Unit 5 007/00 1 / 3 Contents 1 Introduction Consumer Tastes 3 Consumer Choice The Demand Economics - th year (EURSC) Unit 5 007/00 / 3
2 Introduction We now how to represent the budget set given prices and income Which of these will choose an individual? Obviously, the most preferred Individual preferences are modelled through indifference curves Indifference curves: the set of consumption bundles which are indifferent to an individual Economics - th year (EURSC) Unit 5 007/00 3 / 3 xioms on Tastes To represent Indifference Curves we need to make some assumptions 1 Consumer can rank the different bundles according to satisfaction The consumer prefers more to less 3 Transitivity: if a bundle is indifferent to and is indifferent to C then is indifferent to C. Economics - th year (EURSC) Unit 5 007/00 / 3
3 Properties of Indifference Curves The above three assumptions imply that indifference curves are: Decreasing (proof) The higher the curve, the higher the satisfaction (proof) Can not cross each other (proof) Indifference curves are also continuous. (not proof) Economics - th year (EURSC) Unit 5 007/00 5 / 3 Cinema Higher curves mean higher satisfaction 1 Decreasing Utility Preferred Region Dominated Region C Increasing Utility
4 Cinema 1 Indifference curves are decreasing Preferred Region Dominated Region C Indifference Curve Cinema Indifference curves do not cross 1 C
5 Rate of Substitution and Convexity Rate of substitution: the maximum number of units of Y you would like to give for an additional unit of X.... or the minimum number of Y you ask to receive for giving up 1 X. In the limit, rate of substitution is the increment ratio, i.e., the slope of the indifference curve We assume a new additional xiom: Rate of substitution is decreasing. Thus, Indifference Curves are convex (proof) Economics - th year (EURSC) Unit 5 007/00 9 / 3 Cinema Indifference curves are convex 1 C
6 Solution We have the elements for finding individual choice The budget restriction: represents bundles which are affordable The Map of indifference curves: represents tastes est Choice: the bundle in the restriction that maximizes utility Graphically: the point where indifference curve is tangent to budget line Economics - th year (EURSC) Unit 5 007/00 11 / 3 Cinema 1 C
7 Economic Interpretation The slope of the IC is the (marginal) rate of substitution. The slope of the udget Line is the rate at which market exchanges X per Y If not equal. the individual will go on doing exchange Slope IC > Slope L uy more X, sell Y Slope IC < Slope L Sell more X, buy Y Solution: equilibrium is reached when both coincide (marginally, principle #3) Economics - th year (EURSC) Unit 5 007/00 13 / 3 Factors of demand The quantity demanded of a good changes when: Changes in income Changes in own price Changes in other goods prices Changes in preferences Economics - th year (EURSC) Unit 5 007/00 1 / 3
8 Demand and Income If income increases, not always demand increases Normal good: demand increases with income Inferior good: demand decreases with income good is normal or inferior depending on preferences, not in the nature of good. (possibly) Inferior Good The demand for shoe-repair services may be for many an inferior good, since people tends to buy new shoes rather than repairing as they get richer. Economics - th year (EURSC) Unit 5 007/00 15 / 3 Cinema as a Normal Good
9 Cinema as an Inferior Good Changes in Own Price When price increases, there are two effects in the budget line The Effect on Relative Price The Effect on Income The corresponding effects for demand are called: Substitution Effect: Change in demand due to change in relative prices Income Effect: Change in demand due to change in real income Substitution Effect is always negative. Income effect may be negative or positive, depending on normal or inferior good. Economics - th year (EURSC) Unit 5 007/00 1 / 3
10 Cinema n Increase of Price of 1 Substitution effect Income Effect Demand and Price When the price of a good increases 1 For substitution effect, demand reduces For income effect: Normal good: Demand reduces Inferior good: Demand increases For normal good, price increases, demand reduces For inferior good, if the income effect is smaller than substitution effect finally, demand reduces if the income effect is bigger than the substitution effect finally, demand may increase. (Giffen good) Economics - th year (EURSC) Unit 5 007/00 0 / 3
11 The Price of Other Goods When the price of other goods increase Substitute: the demand of the good increase Complements: the demand of the good reduces (Possibly) substitute goods lack pens and blue pens are almost perfect substitutes. If the price of blue pens increases, many consumers will tend to replace blue pens with black pens, and demand of black pens will increase. (possibly) complement goods New electronic gadgets like Digital cameras, mp3 and rechargeable batteries are complementary. s the price of these devices has been decreasing, the demand for rechargeable batteries has expanded. Economics - th year (EURSC) Unit 5 007/00 1 / 3 Cinema 1 and Cinema are Substitutes
12 Cinema 1 and Cinema are Complements
Unit 2: Theory of Consumer Behaviour
Name: Unit 2: Theory of Consumer Behaviour Date: / / Notations and Assumptions A consumer, in general, consumes many goods; but for simplicity, we shall consider the consumer s choice problem in a situation
More informationCONSUMER BEHAVIOUR. Lecture delivered at the MDKG College 1 st Semester (Major)
Lecture delivered at the MDKG College 1 st Semester (Major) Ashwini Machey Assistant Professor Department of Economics MDKG College, Dibrugarh, Assam Concept of Consumer Behaviour: The theory of consumer
More informationTheory of Consumer Behavior First, we need to define the agents' goals and limitations (if any) in their ability to achieve those goals.
Theory of Consumer Behavior First, we need to define the agents' goals and limitations (if any) in their ability to achieve those goals. We will deal with a particular set of assumptions, but we can modify
More informationSCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME
All Rights Reserved No. of Pages - 07 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER I INTAKE VIII (GROUP B) END SEMESTER
More informationDemand - the desire, ability, and willingness to buy a product.
Demand - the desire, ability, and willingness to buy a product. The Law of Demand states that the quantity demanded of a good will be greater at lower prices than will be demanded at higher prices. Thus
More informationChapter 3 Outline. Consumer Theory. Chapter 3: Model of Consumer Behavior. Challenge: Why Americans Buy E-Books and Germans Do Not
Chapter 3 Outline Chapter 3 Consumer Theory If this is coffee, please bring me some tea; but if this is tea, please bring me some coffee. Abraham Lincoln Challenge: Why Americans Buy E-Books and Germans
More informationDemand - the desire, ability, and willingness to buy a product.
Demand - the desire, ability, and willingness to buy a product. 1. You must have the desire for the product 2. You must be able to make a purchase 3. You must be willing to make a purchase 4. Purchases
More information1102-Microeconomics. I (6 Questions 12,5 points)
1102-Microeconomics First Mid-Term Fall 2012/2013 I (6 Questions 12,5 points) Toni has 200 available to spend in Tickets for Soccer Matches (S) and aviar (). His preferences can be represented by and the
More informationChapter 1- Introduction
Chapter 1- Introduction A SIMPLE ECONOMY Central PROBLEMS OF AN ECONOMY: scarcity of resources problem of choice Every society has to decide on how to use its scarce resources. Production, exchange and
More informationUnit 4: Consumer choice
Unit 4: Consumer choice In accordance with the APT programme the objective of the lecture is to help You to: gain an understanding of the basic postulates underlying consumer choice: utility, the law of
More informationJanuary Examinations 2015
January Examinations 2015 DO NOT OPEN THE QUESTION PAPER UNTIL INS TRUCTED TO DO SO BY THE CHIEF INVIGILATOR Department Module Code Module Title Exam Duration (in words) ECONOMICS EC2000 INTERMEDIATE MICROECONOMICS
More information1. T F The resources that are available to meet society s needs are scarce.
1. T F The resources that are available to meet society s needs are scarce. 2. T F The marginal rate of substitution is the rate of exchange of pairs of consumption goods or services to increase utility
More informationEcon 303. Weeks 3-4 Consumer Theory
Econ 303 Weeks 3-4 Consumer Theory CHAPTER 3 OUTLINE 3.1 Consumer Preferences 3.2 Budget Constraints 3.3 Consumer Choice 3.4 Revealed Preference 3.5 Marginal Utility and Consumer Choice Consumer Behavior
More informationFOR MORE PAPERS LOGON TO
ECO401- Economics Question No: 1 ( Marks: 1 ) - Please choose one Land is best described as: Produced factors of production. "Organizational" resources. Physical and mental abilities of people. "Naturally"
More informationIntermediate Microeconomic Theory, 12/29/2002. Lecture 6 Exchange
Lecture 6 Exchange The Digital Economist Usually, we study the behavior of the markets using the traditional supply and demand framework. Through the use of supply and demand, we have determined the equilibrium
More informationChapter Eight. Effects of a Price Change. Effects of a Price Change. Effects of a Price Change. Slutsky Equation. m p
Effects of a Price Change Chapter Eight Slutsky Equation What happens when a commodity s price decreases? Substitution effect: change in demand due to the change in the rate of exchange between the two
More information1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. The two things needed for demand to exist are: willingness
More information2) Which of the following could remedy a shortage caused by a price ceiling? (D) Simultaneous outward shift of demand and inward shift of supply
1) When the supply curve shifts outwards, what is the effect on equilibrium price and quantity? (A) Price increases, quantity decreases (B) Price decreases, quantity increases (C) Price increases, quantity
More informationfull revision of micro economics
www.examhelplogger.com full revision of micro economics JOIN CLASS 12 TH FREE BATCH ON WHATS APP M 98 91 291 604 MICRO ECONOMICS Studies The Behaviour Of An Individual Economic Unit. Example : Demand Of
More informationPreferences 9. Preferences
Preferences 9 Preferences A. Preferences are relationships between bundles. 1. if a consumer would choose bundle (, )when(y 1,y 2 )is available, then it is natural to say that bundle (, )is preferred to
More informationChapter 10 Consumer Choice and Behavioral Economics
Microeconomics Modified by: Yun Wang Florida International University Spring 2018 1 Chapter 10 Consumer Choice and Behavioral Economics Chapter Outline 10.1 Utility and Consumer Decision Making 10.2 Where
More informationConsumer s Equilibrium
ECONOMICS (CLASS 12) HOLIDAYS HOMEWK ASSIGNMENT Q1 ) The demand for the good at price of Rs 4 is 25. When the price of the good increases to Rs 5, the demand for the good falls to 20 units. Calculate price
More informationCONSUMER'S BEHAVIOUR & THEORY OF DEMAND
UNIT 2 CONSUMER'S BEHAVIOUR & THEORY OF DEMAND POINTS TO REMEMBER Consumer : is an economic agent who consumes final goods and services. Total utility : It is the sum of satisfaction from consumption of
More informationContents. Consumer Choice: Individual and Market Demand- Demand and Elasticity. I) Markets and Prices. II) Demand Side. III) The Supply Side
Consumer Choice: Individual and Market Demand- Demand and Elasticity Dr. Ashraf Samir Website: ashraffeps.yolasite.com Contents I) Markets and Prices II) Demand Side III) The Supply Side IV) Market Equilibrium
More informationChapter 1: The Ten Lessons in Economics
Textbook Notes Page 1 Chapter 1: The Ten Lessons in Economics Saturday, 25 May 2013 1:09 PM Economics: The study of how society manages its scarce resources Individual Decision-Making Lesson 1: People
More informationI. Decision Making Units
LECTURE NOTE 02 DEMAND, SUPPLY AND MARKET EQUILIBRIUM Outline of today s lecture: I. Decision Making Units... 1 II. Circular Flow... 2 III. Demand in Output Markets... 4 IV. Supply in Output Markets...
More informationa) I, II and III. b) I c) II and III only. d) I and III only. 2. Refer to the PPF diagram below. PPF
1. Suppose that - at a given level of an economic activity - marginal social cost is greater than marginal social benefit. Which of the following statements is TRUE? I. Social surplus would be higher at
More informationMICRO-ECONOMIC THEORY I STUDY NOTES CHAPTER ONE
MICRO-ECONOMIC THEORY I STUDY NOTES CHAPTER ONE UNIT 1 BASIC CONCEPT OF CONSUMER BEHAVIOUR CHAPTER ONE CONTENTS Introduction Objectives Main Content Theory of Consumer Behaviour Consumer Preferences Decisiveness
More informationChapter 21. Consumer Choice
Consumer Choice Utility is most closely defined as a) extra. b) marginal. c) usefulness. d) satisfaction. e) opportunity cost. Copyright Houghton Mifflin Company. All rights reserved. 21 2 Utility is most
More informationFINAL EXAMINATION. Special Instructions: Date: DECEMBER 15, 2000 School Year: Course and No.: ECON1006EA Time: 1:30 PM- 3:30 PM
FINAL EXAMINATION Date: DECEMBER 15, 2000 School Year: 2000-2001 Course and No.: ECON1006EA Time: 1:30 PM- 3:30 PM Professor: SARLO, C Department: Arts & Science Number of Pages: 11 + cover Time Allowed:
More information2 Theory of Demand, Slutsky Equation
Microeconomics I - Lecture #2, September 29, 2008 2 Theory of Demand, Slutsky Equation 2.1 Theory of Demand Based on the analysis of consumer s optimal consumption we know that the demand depends on individual
More informationWhy did you want those things so bad? If you were given the option to have them today would you still want?
Think of 3 things in your life that you have either bought or were given to you that you wanted more then anything. (this could be recent or from back when you were a kid) Write those things down. Why
More informationECO401- Economics Spring 2009 Marks: 20 NOTE: READ AND STRICTLY FOLLOW ALL THESE INSTRUCTIONS BEFORE ATTEMPTING THE QUIZ.
www..net - Economics Spring 2009 Marks: 20 NOTE: READ AND STRICTLY FOLLOW ALL THESE INSTRUCTIONS BEFORE ATTEMPTING THE QUIZ. INSTRUCTIONS This quiz covers Lesson # 01-14. Do not use red color in your quiz.
More informationQ.1 Distinguish between increase in demand and increase in quantity demanded of a commodity.
Q.1 Distinguish between increase in demand and increase in quantity demanded of a commodity. Q. 2 Given price of a good, how does a consumer decide as to how much of that good to buy? Q. 3 A consumer consumers
More information23115 ECONOMICS FOR BUSINESS Lecture 1: Market forces of supply and demand
23115 ECONOMICS FOR BUSINESS Lecture 1: Market forces of supply and demand 1. INTRODUCTION THEORY OF SUPPLY AND DEMAND o Considers interactions between buyers and sellers in a competitive market. o In
More informationCh3: Consumer Preferences and Utility
Ch3: Consumer Preferences and Utility Goal of Ch 3 and 4: To construct a model of demand based on individual decision making (ie:consumer choice). We will find this model has broad applicability. To construct
More informationTHE TWO MAIN MARKET FORCES: DEMAND AND SUPPLY. Instructor: Ghislain Nono Gueye
THE TWO MAIN MARKET FORCES: DEMAND AND SUPPLY Instructor: Ghislain Nono Gueye 1 The concept of demand You demand a good/service when you: - Want it - Can afford it - Plan to buy it You are not demanding
More informationUNIT 2 CONSUMER'S BEHAVIOUR & THEORY OF DEMAND POINTS TO REMEMBER Consumer : is an economic agent who consumes final goods and services. Total utility : It is the sum of satisfaction from consumption of
More informationECON 3710, Intermediate Microeconomics Exam #1 Spring, 2008
ECON 3710, Intermediate Microeconomics Dr. Tod Porter Exam #1 Spring, 2008 Last Name First Name 1. (30 pts.) Put an "X" directly over the "T" if the statement is true, or an "X" over the "F" if it is false.
More informationChapter 3 Demand and Supply John Petroff (2002)
Chapter 3 Demand and Supply John Petroff (2002) INTRODUCTION The purpose of this lesson is to reach an understanding of how markets operate, how prices are set and transactions occur. The two market forces
More informationIntroduction. Consumer Choice 20/09/2017
Consumer Choice Introduction Managerial Problem Paying employees to relocate: when Google wants to transfer an employee from its Seattle office to its London branch, it has to decide how much compensation
More informationINSTITUTE OF RISING STARS
INSTITUTE OF RISING STARS 1/9,Lalita Park, Main Vikas Marg,Laxmi Nagar Chapter 2 Theory of Demand and Supply 1. Which of the following pairs of goods is an example of substitutes? (a) Tea and sugar (b)
More information1 of 14 5/1/2014 4:56 PM
1 of 14 5/1/2014 4:56 PM Any point on the budget constraint Gives the consumer the highest level of utility. Represent a combination of two goods that are affordable. Represents combinations of two goods
More informationPractice Exam 3: S201 Walker Fall with answers to MC
Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility
More informationChapter 4: Individual and Market Demand. Chapter : Implications of optimal choice
Econ 203 Chapter 4 page 1 Overview: Chapter 4: Individual and Market Demand Chapter 4 + 5.1-5.3: Implications of optimal choice What happens if changes? What happens to individual demand if a price changes?
More informationCHAPTER 2 THEORY OF DEMAND AND SUPPLY. Unit 3. Supply. The Institute of Chartered Accountants of India
CHAPTER 2 THEORY OF DEMAND AND SUPPLY Unit 3 Supply Learning Objectives At the end of this unit you will be able to : understand the meaning of supply. understand what determines supply. get an insight
More informationManagerial Economics, 01/12/2003. A Glossary of Terms
A Glossary of Terms The Digital Economist -A- Abundance--A physical or economic condition where the quantity available of a resource exceeds the quantity desired in the absence of a rationing system. Arbitrage
More informationECON 251 Practice Exam 2 Questions from Fall 2013 Exams
ECON 251 Practice Exam 2 Questions from Exams Gordon spends all his income on spatulas and mixing bowls. Spatulas cost $4 and mixing bowls cost $12. Gordon has $60 of income and considers both spatulas
More informationPostgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ)
Postgraduate Diploma in Marketing December 2017 Examination Economic and Legal Impact (Econ) Date: 20 December 2017 Time: 0830 Hrs 1130 Hrs Duration: Three (03) Hrs ) Total marks for this paper is 100
More informationEconomics MCQ (1-50) GAT Subject Management Sciences.
Economics MCQ (1-50) GAT Subject Management Sciences www.accountancyknowledge.com 51. If a 5% increase in price causes no change in total revenue, this means? (a) Demand is price inelastic (b) Demand is
More informationQuestion # 1 of 15 ( Start time: 01:24:42 PM ) Total Marks: 1 A person with a diminishing marginal utility of income: Will be risk averse. Will be risk neutral. Will be risk loving. Cannot decide without
More informationThis exam contains 11 pages (including this cover page) and 12 questions.
ECON 001 Fall 2015 A. Duchene Midterm 2 November 4, 2015 Time Limit: 0 Minutes Name (Print): Recitation Section: Name of TA: Read these instructions carefully: This exam contains 11 pages (including this
More informationAttribute Theory of Consumer Behavior
Attribute Theory of Consumer Behavior Lancaster, K. J. (1966). A new Approach to Consumer Theory. Journal of Political Economy. 74, 132-157. Traditional theories of consumer behavior do not take into account
More informationCHAPTER 11 Consumer Preferences & Consumer Choice. Kazu Matsuda IBEC 202 Microeconomics
CHAPTER 11 Consumer Preferences & Consumer Choice Kazu Matsuda IBEC 22 Microeconomics Mapping the Utility Function A utility function = determines a consumer s total utility given his or her consumption
More informationUNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION 1 ST SEMESTER B A ECONOMICS MULTIPLE CHOICE QUESTION CORE COURSE MICRO-ECONOMICS
UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION 1 ST SEMESTER B A ECONOMICS MULTIPLE CHOICE QUESTION CORE COURSE MICRO-ECONOMICS Question Bank 1) Worth a rupee to a consumer is called: (a) Marginal
More informationAfter studying this chapter you will be able to
3 Demand and Supply After studying this chapter you will be able to Describe a competitive market and think about a price as an opportunity cost Explain the influences on demand Explain the influences
More informationEastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester
Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2016-17 Fall Semester Duration: 110 minutes ECON101 - Introduction to Economics I Final Exam Type A 11 January
More informationConcordia University Econ 201
Concordia University Econ 201 Department of Economics Shih-tse (Fred) Lo NOTE 3: MARKET DEMAND AND SUPPLY * Market An institution or mechanism that brings buyers (a.k.a. demanders, consumers), and sellers
More informationTest 1 Economics 321 Chappell September 27, Last 4 digits SSN
Test 1 Economics 321 Chappell September 27, 2007 Name Last 4 digits SSN Answer multiple choice questions on the form provided. Be sure to write our name and last 4 digits of our social securit number on
More informationEcon 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1
Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1 Chronological order of topics covered in class (to the best of my memory). Introduction to Microeconomics (Chapter 1) What is
More informationSeyda Yildiz ID #: Assignment 2 (each question is worth of 3.5 points) (due on Tuesday, May 22)
CECN 104 Name: Seyda Yildiz ID #: Assignment 2 (each question is worth of 3.5 points) (due on Tuesday, May 22) 1. Which of the following statements is correct? A. Utility and usefulness are synonymous.
More informationSt Joseph College of Arts and Science (Autonomous), cuddalore-1. Department of Economics Business Economics -1 PART A
St Joseph College of Arts and Science (Autonomous), cuddalore-1 Subject code: AECM101T/AEBM101T Department of Economics Business Economics -1 PART A 1. Define Economics. 2. Define Business economics 3.
More informationEconomics 11 Caltech Spring 2010
Homework olicy Goods for all Economics Caltech pring 00 roblem et : solutions tudy ou can study the homework on your own or with a group of fellow students. ou should feel free to consult notes text books
More informationIntermediate Microeconomic Theory Economics 3070 Summer Introduction and Review: Chapters 1, 2 (plus corresponding study guide)
Intermediate Microeconomic Theory Economics 3070 Summer 1994 Professor M.J. Greenwood Office: Econ 208 Office Hours: 3:40-4:20 daily and by appointment A Term COURSE OUTLINE Part I. Text: Robert H. Frank,
More informationFinal Exam - Solutions
Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 009 Instructor: John Parman Final Exam - Solutions You have until 1:30pm to complete this exam. Be certain to put
More informationEconomics 448W, Notes on the Classical Supply Side Professor Steven Fazzari
Economics 448W, Notes on the Classical Supply Side Professor Steven Fazzari These notes cover the basics of the first part of our classical model discussion. Review them in detail prior to the second class
More informationThis is what we call a demand schedule. It is a table that shows how much consumers are willing and able to purchase at various prices.
Demand Market: an institution or mechanism, which brings together buyers ("demanders") and sellers ("suppliers") of particular goods and services. The remainder of this unit assumes a perfectly competitive
More informationECO401 current paper (May 2010) Today Paper ( )
Solved by afaaq shani bhai adeel Asslam O Alikum ECO 401 MIDTERM PAPERS Solved by Afaaq Shani bhai n Adeel Remember Us In Your Prayers Best regard s Muhammad Afaaq Mba 3 rd Finance Group Afaaq_Tariq@yahoo.com
More informationLesson-11. Consumer Market-- Demand and Consumer Behavior
Lesson-11 Consumer Market-- Demand and Consumer Behavior This lesson looks closer at the economic interpretation of consumer demand and explores two approaches to modeling the consumer's choices. The older
More informationLONG RUN AGGREGATE SUPPLY
The Digital Economist Lecture 8 -- Aggregate Supply and Price Level Determination LONG RUN AGGREGATE SUPPLY Aggregate Supply represents the ability of an economy to produce goods and services. In the Long
More informationCHAPTER 2: DEMAND AND SUPPLY
CHAPTER 2: DEMAND AND SUPPLY CIA4U Ms. Schirk 2.3 THE MARKET A market can be: A physical place where goods are bought and sold A collective reference to all the buyers and sellers of a particular good
More informationCHAPTER 2: DEMAND AND SUPPLY
2.3 THE MARKET CHAPTER 2: DEMAND AND SUPPLY CIA4U Ms. Schirk A market can be: A physical place where goods are bought and sold A collective reference to all the buyers and sellers of a particular good
More informationUniversity of Toronto June 14, ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1
Department of Economics Prof. Gustavo Indart University of Toronto June 14, 2007 SOLUTION ECO 100Y INTRODUCTION TO ECONOMICS Midterm Test # 1 A LAST NAME FIRST NAME STUDENT NUMBER SECTION ( Morning or
More informationMicro Economics M.A. Economics (Previous) External University of Karachi Micro-Economics
Micro Economics M.A. Economics (Previous) External University of Karachi Micro-Economics Annual Examination 1997 Time allowed: 3 hours Marks: 100 Maximum 1) Attempt any five questions. 2) All questions
More information1. Supply and demand are the most important concepts in economics.
Page 1 1. Supply and demand are the most important concepts in economics. 2. Markets and Competition a. Def: Market is a group of buyers and sellers of a particular good or service. P. 66. b. Def: A competitive
More informationECON 310 Spring 2007 (ticket #15619) Exam 1 - Version B
ECON 30 Spring 007 (ticket #569) Exam - Version B Name: Multiple Choice: (4 points each) ) The income elasticity of demand for margarine is -0.0. This value suggests that a. a slight increase in the price
More informationECON 310 Spring 2007 (ticket #15619) Exam 1 - Version A
ECON 30 Spring 007 (ticket #569) Exam - Version A Name: Multiple Choice: (4 points each) ) The income elasticity of demand for margarine is -0.0. This value suggests that a. a slight increase in the price
More informationEconomics 323 Microeconomic Theory Fall 2016
pink=a FIRST EXAM Chapter Two Economics 33 Microeconomic Theory Fall 06. The process whereby price directs existing supplies of a product to the users who value it the most is called the function of price.
More informationBasic Economics Chapter 4
1 Basic Economics Chapter 4 The Market Forces of Supply and Markets and Competition Market = a group of buyers and sellers of a particular good or service Buyers = determine the demand for the product
More informationEconomics 323 Microeconomic Theory Fall 2016
peach=b FIRST EXAM Chapter Two Economics 33 Microeconomic Theory Fall 06. The process whereby price directs existing supplies of a product to the users who value it the most is called the function of price.
More informationStudy Guide Final Exam, Microeconomics
Study Guide Final Exam, Microeconomics 1. If the price-consumption curve of a commodity slopes downward how can you tell whether the consumer spends more or less on this commodity from her budget (income)?
More informationEconomics for Business 23115
Economics for Business 23115 MICROECONOMICS Week 1 Micro 1 Demand and Supply Principles of Economics, Chapter 4 (until page 80 included) The market forces of supply and demand Markets and competition A
More informationEcn Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman. Final Exam
Ecn 100 - Intermediate Microeconomic Theory University of California - Davis December 10, 2009 Instructor: John Parman Final Exam You have until 12:30pm to complete this exam. Be certain to put your name,
More informationINTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 185 : BASIC ECONOMICS 1 RESIT EXAMINATION : APRIL 2003 SESSION
ECO 185 (R) / Page 1 of 10 INTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 185 : BASIC ECONOMICS 1 RESIT EXAMINATION : APRIL 2003 SESSION Answer ALL questions in SECTION A in the OMR sheet provided
More informationECON 251 DISTANCE LEARNING: MAY 2014 MIDTERM EXAM INSTRUCTIONS
ECON 251 DISTANCE LEARNING: MAY 2014 MIDTERM EXAM Student s Name: Proctor s Name: Date: To the student: INSTRUCTIONS You have a maximum of 2 hours to complete the exam The exam is closed notes & book.
More informationCh. 3 LECTURE NOTES Markets II. Demand
Ch. 3 LECTURE NOTES I. Markets A. A market, as introduced in Chapter 2, is an institution or mechanism that brings together buyers (demanders) and sellers (suppliers) of particular goods and services.
More informationMathematical Economics dr Wioletta Nowak. Lecture 3-4
Mathematical Economics dr Wioletta Nowak Lecture 3-4 Properties of the Demand Function: the Marginal Demand, the Price, Income and Cross Price Elasticity of Demand, Classification of Goods: Normal Goods,
More informationEconomics 1 (EC107) LECTURE 1 INTRODUCTORY TOPIC. Importance of scarcity and trade in economics
Economics 1 (EC17) INTRODUCTORY TOPIC Importance of scarcity and trade in economics LECTURE 1 PROLEM OF SCRCITY (PRODUCTION POSSILITY FUNCTION)! If the natural world provided the needs of every consumer
More informationTopic 3. Demand and Supply
Econ 103 Topic 3 page 1 Topic 3 Demand and Supply Text reference: Chapter 3 and 4. Assumptions of the competitive model. Demand: -Determinants of demand -Demand curves -Consumer surplus -Divisibility -
More informationLEARNING UNIT 4 LEARNING UNIT 4
DATE: March 2014 MODULE: PMIC6111 TEXTBOOK REFERENCE: CHAPTER 7 pgs 109-132 THEME: DEMAND, SUPPLY AND PRICES OBJECTIVES: BY END OF YOU SHOULD KNOW THE FOLLOWING: CONSTRUCT AND INTERPRET GRAPHS EXPLAIN
More informationCHAPTER THREE DEMAND AND SUPPLY
CHAPTER THREE DEMAND AND SUPPLY This chapter presents a brief review of demand and supply analysis. The materials covered in this chapter provide the essential background for most of the managerial economic
More informationSupply and Demand. ECO 120: Global Macroeconomics
Supply and Demand ECO 120: Global Macroeconomics 1 1.1 Goals of today s class Goals Specific Goals Learn what demand is and what influences demand. Learn what supply is and what influences supply. Learn
More informationDemand: The desire, ability, and willingness to buy a product.
What is Demand? Demand: The desire, ability, and willingness to buy a product. Impact of Demand: Demand determines what the producers will produce and in what quantities. Remember Consumer Sovereignty??
More informationEcn Intermediate Microeconomic Theory University of California - Davis September 9, 2009 Instructor: John Parman. Final Exam
Ecn 100 - Intermediate Microeconomic Theory University of California - Davis September 9, 2009 Instructor: John Parman Final Exam You have until 1:50pm to complete this exam. Be certain to put your name,
More informationEastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester. ECON 101 Mid term Exam
Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2014 15 Fall Semester ECON 101 Mid term Exam Type A 28 November 2014 Duration: 90 minutes Name Surname: Group
More informationUNIVERSITY OF TORONTO Faculty of Arts and Science. August Examinations 2007 ECO 100Y1 Y. Duration: 3 hours
UNIVERSITY OF TORONTO Faculty of Arts and Science August Examinations 2007 ECO 100Y1 Y Duration: 3 hours Examination Aids allowed: Non-programmable calculators only INSTRUCTIONS: Students are required
More informationMicroeconomics: MIE1102
TEXT CHAPTERS TOPICS 1, 2 ECONOMICS, ECONOMIC SYSTEMS, MARKET ECONOMY 3 DEMAND AND SUPPLY. MARKET EQUILIBRIUM 4 ELASTICITY OF DEMAND AND SUPPLY 5 DEMAND & CONSUMER BEHAVIOR 6 PRODUCTION FUNCTION 7 COSTS
More information2.1 Markets Definition of markets with relevant local, national and international examples
2.1 Markets of markets with relevant local, national and international examples M&B 41 Market: Institution or mechanism that brings together the buyers ( demanders ) and sellers ( suppliers ) of particular
More informationI can explain the law of demand and analyze changes in demand in response to determinants.
I can explain the law of demand and analyze changes in demand in response to determinants. Success Criteria: Identify determinants of demand and accurately graph changes in demand. Determinants of Demand
More informationGetting ready for the AP Macroeconomics Exam Lesson 2
Getting ready for the AP Macroeconomics Exam Lesson 2 Quantity S / D vs. Supply and Demand, Law of Supply and Demand, Reasons for Change of Supply and Demand How does a demand schedule differ from a market
More information