Using Supply and Demand
|
|
- Jeremy Boone
- 6 years ago
- Views:
Transcription
1 CHAPTER 5 Using Supply and Demand It is by invisible hands that we are bent and tortured worst. Nietzsche McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
2 Supply and Demand If we are talking about a change in price and everything else remains constant, we are talking about a shift up/down the curve Anything other than price will shift S or D and we will have a new curve McGraw-Hill/Irwin Colander, Economics 2
3 What happens when S and D both Shift? When both supply and demand shift we can get a change in price but little change in quantity OR a change in quantity but little change in price McGraw-Hill/Irwin Colander, Economics 3
4 A Review of Changes in Supply and Demand No change in Supply Supply increases Supply decreases No change in Demand No Change Price falls, Quantity rises Price rises, Quantity falls Demand increases Price rises, Quantity rises Quantity rises, Price could rise or fall Price rises, Quantity could rise or fall Demand decreases Price falls, Quantity falls Price falls, Quantity could rise or fall Quantity falls, Price could rise or fall 5-4
5 Double Shifting Scenario: Consumers prefer to buy fuel efficient cars and technology to make more fuel efficient cars improves. Analyze the market for fuel efficient cars. What are the S+D shift factors? D=consumer tastes and preferences S=technology McGraw-Hill/Irwin Colander, Economics 5
6 Double Shifting Which way is the demand curve shifting? D is increasing Which way is the supply curve shifting? Supply is increasing Graph each shift independently to determine how P and Q are impacted McGraw-Hill/Irwin Colander, Economics 6
7 Double Shifting P Demand P Supply S 1 S 1 S 2 P 2 P 1 P 1 D 2 P 2 D 1 Q Q 1 Q 2 Q 1 Q 2 D 1 Q P Q P Q McGraw-Hill/Irwin Colander, Economics 7
8 Double Shifting What is the impact on P and Q for both of these shifts? Look at the arrows for P and Q that you graphed: Price is indeterminate and Q increases McGraw-Hill/Irwin Colander, Economics 8
9 Government Intervention in the Market The invisible hand is not the only factor in determining prices, social and political forces also determine price Other factors include: Price Excise taxes Third-party-payer markets Quantity restrictions 5-9
10 Price Ceiling When a government wants to hold prices down to favor buyers, it imposes a price ceiling A price ceiling is a government-imposed limit on how high a price can be charged Creates a shortage Generally affects the market when set below equilibrium price Leads to other methods of rationing goods 5-10
11 Drawing the Graph: Price Ceiling P S P C (price ceiling) Shortage D Q S Q D Q McGraw-Hill/Irwin Colander, Economics 11
12 Application: Rent Controls in Paris P(rent) Housing S 0 After WWII, rent controls (a form of price ceiling) were put in place $17 $2.50 Shortage D 0 The rent controls caused a housing shortage There would not be a shortage if rents had been allowed to increase to the equilibrium price of $17 Q S Q D Q(housing) 5-12
13 Price Floor When a government wants to prevent a price from falling below a certain level to favor suppliers, it imposes a price floor A price floor is a government-imposed limit on how low a price can be charged Creates excess supply Generally affects the market when set above equilibrium price 5-13
14 Drawing the Graph: Price Floor P Surplus S P F (price floor) D Q D Q S Q McGraw-Hill/Irwin Colander, Economics 14
15 Application: A Minimum Wage P(wage) Labor W min Excess supply = unemployment S 0 A minimum wage is a type of price floor, it is the lowest wage a firm can legally pay an employee W 0 Minimum wages cause unemployment D 0 Q D Q S Q(of workers) 5-15
16 Excise Taxes Government impacts markets through taxation An excise tax is a tax that is levied on a specific good A tariff is an excise tax on an imported good Taxes and tariffs increase equilibrium price and reduce equilibrium quantities 5-16
17 Application: The Effect of an Excise Tax P Luxury Boats S1 Government imposes a $10,000 luxury tax on the suppliers of boats S0 $70,000 $65,000 Tax = $10,000 The distance between the supply curves represents the amount of the tax ($10,000) $60, D0 Q The new equilibrium price of boats rises by less than the tax to $70,000 (More on this in CH 7) 5-17
18 Quantity Restrictions Government regulates markets with licenses, which limit entry into a market Many professions require licenses, such as doctors, financial planners, cosmetologists, electricians, or taxi cab drivers The results of limited number of licenses in a market are increases in wages and an increases in the price of obtaining the license 5-18
19 Drawing the Graph: Quantity Restrictions P Q R Q R shows us that only a certain quantity can be produced. In this instance, supply is limited to 250 units. Q R is the supply curve and will always be completely vertical. D Q McGraw-Hill/Irwin Colander, Economics 19
20 Application: The Effect of a Quantity Restriction P(wage) NYC Taxi Drivers Q R Successful lobbying by taxi cab drivers in NYC resulted in quantity restrictions (medallions) $15 D 1 When the demand for taxi services increased, because the number of taxi licenses was limited, wages increased 12,000 D 0 Q(of drivers) 5-20
21 Application: The Effect of a Quantity Restriction P NYC Taxis Medallions $400,000 QR The demand for taxi medallions also increased because wages were increasing. But because the number of taxi licenses was limited, the price of a medallion also increased Initial Fee D1 12,000 D0 Q(of medallions) 5-21
22 Third-Party-Payer Markets In third-party-payer markets, the person who receives the good differs from the person paying for the good Under a third-party-payer system, the person who chooses how much to purchase doesn t pay the entire cost Equilibrium quantity and total spending can be much higher in third-party-payer markets Goods from a third-party-payer system will be rationed through social and political means 5-22
23 Third-Party-Payer Markets Think health care: You have insurance and don t pay the total cost of your medical needs You only pay the co-pay Ex. Medicaid In a third-party-payer system quantity demanded will be higher than it would normally be McGraw-Hill/Irwin Colander, Economics 23
24 Application: Third-Party-Payer Markets P Health Care With a copayment of $5, consumers demand18 units $45 $25 S0 Sellers require $45 per unit for that quantity Total expenditures for 18 units of health care are greater than when $ D0 Q The consumer pays the entire cost 5-24
Supply, Demand, and Government Policies. Copyright 2004 South-Western
Supply, Demand, and Government Policies Copyright 2004 South-Western Supply, Demand, and Government Policies In a free, unregulated market system, market forces establish equilibrium prices and exchange
More informationAP Microeconomics Review With Answers
AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show
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 informationC. many buyers and many sellers C. Sue will likely purchase more than one bottle of shampoo. B. cause the demand for mangos to shift to the right
Multiple Choice 1. Competitive markets are characterized as having A. many buyers and a single seller B. many buyers and a few sellers. C. many buyers and many sellers D. a few buyers and many sellers
More informationMods 8 and 9 practice
Mods 8 and 9 practice Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The government imposes a price ceiling below the equilibrium price. The price ceiling
More informationSupply and Demand. Chapter 3. McGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Supply and Demand Chapter 3 McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives 1. Describe how the demand and supply curves summarize the behavior
More informationSupply, demand and government policies. Dr. Anna Kowalska-Pyzalska
Supply, demand and government policies Dr. Anna Kowalska-Pyzalska Price ceiling Price floor Tax incidence In a free, unregulated market system, market forces establish equilibrium prices and exchange quantities.
More informationCosumnes River College Principles of Microeconomics Problem Set 4 Due March 3, 2015
pring 2015 Cosumnes River College rinciples of Microeconomics roblem et 4 ue March 3, 2015 Name: olutions rof. owell Instructions: Write the answers clearly and concisely on these sheets in the spaces
More informationEcon 101, sections 2 and 6, S06 Schroeter Exam #2, Red. Choose the single best answer for each question.
Econ 101, sections 2 and 6, S06 Schroeter Exam #2, Red Choose the single best answer for each question. 1. If the own-price elasticity of demand for a good is -2.0, this implies that consumers would a.
More informationPrice = The Interaction of Supply and Demand WEDNESDAY, FEBRUARY 17 THURSDAY, FEBRUARY 18
Price = The Interaction of Supply and Demand WEDNESDAY, FEBRUARY 17 THURSDAY, FEBRUARY 18 Chapter 4: Section 1 Understanding Demand What Is Demand? Markets are where people come together to buy and sell
More informationName & Block: Word Definition Provide an Example (Must be a sentence) Demand (79)
Name & Block: Economics: Unit Two Study Guide Standards: SSEMI2 Explain how the law of demand, the law of supply, and prices work to determine production and distribution in a market economy. a. Define
More informationUnit I: Basic Economic Concepts
Unit I: Basic Economic Concepts What is Economics in General? Economics is the science of scarcity. Scarcity is the condition in which our wants are greater than our limited resources. Since we are unable
More informationChapter 5: Supply Section 3
Chapter 5: Supply Section 3 Objectives 1. Explain how factors such as input costs create changes in supply. 2. Identify three ways that the government can influence the supply of goods. 3. Analyze other
More informationECON 251. Exam 1 Pink. Fall 2013
ECON 251 1. By definition, opportunity cost is a. The value of the best alternative b. The sum of the value of all available alternatives c. The amount of money it takes to buy an item d. Always greater
More informationDownloaded for free from 1
Micro Chapter 6 -price ceiling or price cap: government regulation that makes it illegal to charge a price higher then a specified level -effects of the price cap on the market depend on whether the ceiling
More informationMarket Equilibrium, the Price Mechanism and Market Efficiency. Chapter 3
Market Equilibrium, the Price Mechanism and Market Efficiency Chapter 3 Equilibrium Equilibrium is defined as a state of rest, self-perpetuating in the absence of any outside disturbance. Example: a book
More informationExam Spring. Name: Class: Date: Multiple Choice Identify the choice that best completes the statement or answers the question.
Class: Date: Exam1 2014 Spring Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Ch.6 When a tax is imposed on the buyers of a good, the demand curve shifts
More informationMICROECONOMICS SECTION I. Time - 70 minutes 60 Questions
MICROECONOMICS SECTION I Time - 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best
More informationApplications of supply and demand
Applications of supply and demand Comparative statics and government policy Comparative statics The simple supply and demand model we have developed can be used to analyze the effects of many events on
More informationEcon 2113 Test #2 Dr. Rupp Fall 2008
D Econ 2113 Test #2 Dr. Rupp Fall 2008 Name Pledge: I have neither given nor received aid on this exam Version A Signature: Directions: Bubble in name: Last, First Bubble in 00 in Special Codes Sign the
More informationMechanism through which buyers (demanders) and sellers (suppliers) communicate to trade goods and services.
By the end of this learning plan, you will be able to: Use marginal (Cost-Benefit) analysis in decision-making Apply supply and demand analysis to price determination Assess the role price plays in a market
More informationTaxation by another name
Government Intervention as Implicit Taxation Taxation by another name 7-4 Control Government intervention in the form of price controls can be viewed as a combination tax and subsidy. A price ceiling is
More informationEcon Test 2B Dr. Rupp Tuesday, March 3, 2009 Pledge: I have neither given or received aid on this exam Signature
Econ 2113 - Test 2B Dr. Rupp Tuesday, March 3, 2009 Name Pledge: I have neither given or received aid on this exam Signature Multiple Choice Identify the letter of the choice that best completes the statement
More informationThe Laws of Supply and Demand. What are the basic laws of supply and demand? What causes shifts in the curves of supply and demand?
The Laws of Supply and Demand What are the basic laws of supply and demand? What causes shifts in the curves of supply and demand? What is supply and demand? Supply and demand is how economists track the
More information1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States.
1. Welfare economics is the study of a. the well-being of less fortunate people. b. welfare programs in the United States. c. the effect of income redistribution on work effort. d. how the allocation of
More informationEOCT Test Semester 2 final
EOCT Test Semester 2 final 1. The best definition of Economics is a. The study of how individuals spend their money b. The study of resources and government c. The study of the allocation of scarce resources
More informationPerfectly Competitive Supply. Chapter 6. Learning Objectives
Perfectly Competitive Supply Chapter 6 McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives 1.Explain how opportunity cost is related to the supply
More information1. Suppose that policymakers have been convinced that the market price of cheese is too low.
ECNS 251 Homework 3 Supply & Demand II ANSWERS 1. Suppose that policymakers have been convinced that the market price of cheese is too low. a. Suppose the government imposes a binding price floor in the
More informationSubtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity
CHAPTER 4 Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity CHAPTER OVERVIEW Price elasticity is one of the most useful concepts in economics. It measures the responsiveness
More informationProblem Set 5. The price will be higher than the equilibrium price. There will be a surplus of cheese.
Problem Set 5 I. 1. The government has decided that the free-market price of cheese is too low. a) Suppose the government imposes a binding price floor in the cheese market. Draw a supply-and-demand diagram
More informationProblem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011
Problem Set 3 Eco 112, Spring 2011 Chapters covered: Ch. 6 and Ch. 7 Due date: March 3, 2011 There are 30 multiple choice questions in this problem set. Answer these questions by the beginning of the class
More information1. Fill in the missing blanks ( XXXXXXXXXXX means that there is nothing to fill in this spot):
1. Fill in the missing blanks ( XXXXXXXXXXX means that there is nothing to fill in this spot): Quantity Total utility Marginal utility 0 0 XXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX 200 0 = 200 1 200 XXXXXXXXXXX
More informationEconomics 102 Summer 2015 Answers to Homework #2 Due Tuesday, June 30, 2015
Economics 102 Summer 2015 Answers to Homework #2 Due Tuesday, June 30, 2015 Directions: The homework will be collected in a box before the lecture. Please place your name on top of the homework (legibly).
More information1. True or False. If the marginal product of labor is decreasing, then the average product of labor must also be decreasing. Explain.
ECO 220 Intermediate Microeconomics Professor Mike Rizzo Second COLLECTED Problem Set SOLUTIONS This is an assignment that WILL be collected and graded. Please feel free to talk about the assignment with
More informationGLOBAL. Microeconomics ELEVENTH EDITION. Michael Parkin EDITION
GLOBAL EDITION Microeconomics ELEVENTH EDITION Michael Parkin Microeconomics, Global Edition - PDF - PDF - PDF Table of Contents Cover Microeconomics About the Author Brief Contents Alternative Pathways
More informationJANUARY EXAMINATIONS 2005
No. of Pages: (A) 7 No. of Questions: 26 EC1000A ' JANUARY EXAMINATIONS 2005 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates This paper
More informationEcon 101: Principles of Microeconomics
Econ 101: Principles of Microeconomics Ch. 3: Supply and Demand: A Model of a Competitive Market Fall 2010 Herriges (ISU) Chapter 3: Supply and Demand Fall 2010 1 / 37 Outline 1 The Demand Curve Building
More informationTotal Test Questions: 80 Levels: Grades Units of Credit:.50
DESCRIPTION This course focuses on the study of economic problems and the methods by which societies solve them. Characteristics of the market economy of the United States and its function in the world
More informationEC 201 Lecture Notes 1 Page 1 of 1
EC 201 Lecture Notes 1 Page 1 of 1 ECON 201 - Macroeconomics Lecture Notes 1 Metropolitan State University Allen Bellas The textbooks for this course are Macroeconomics: Principles and Policy by William
More informationWelfare economics part 2 (producer surplus) Application of welfare economics: The Costs of Taxation & International Trade
Welfare economics part 2 (producer surplus) Application of welfare economics: The Costs of Taxation & International Trade Dr. Anna Kowalska-Pyzalska Department of Operations Research Presentation is based
More informationSAMPLE FINAL. Part I - Multiple Choice Questions:
Part I - Multiple Choice Questions: SAMPLE FINAL 1. Which of the following is not a characteristic of a perfectly competitive market? a. Firms are price takers. b. Firms have difficulty entering the market.
More information1. /20 5. /10 2. /20 6. /10 3. /13 7. /5 4. /30 8. /5 TOTAL /113. Name: Team: Corrected By:
1. /20 5. /10 2. /20 6. /10 3. /13 7. /5 4. /30 8. /5 TOTAL /113 Name: Team: Corrected By: Unit II: Supply, Demand, and Consumer Choice Problem Set #2 1. EXPLAIN an experience or example that shows the
More informationSample. Final Exam Sample Instructor: Jin Luo
Final Exam Instructor: Jin Luo Multiple Choice (2 *30 = 60) Identify the letter of the choice that best completes the statement or answers the question. 1. Price takers refer to buyers and sellers in a.
More informationUnit 5: The Resource Market. (aka: The Factor Market or Input Market)
Unit 5: The Resource Market (aka: The Factor Market or Input Market) 1 Perfect Competition Resource Markets Monopsony Perfectly Competitive Labor Market Characteristics: Many small firms are hiring workers
More informationTen Principles of Economics
C H A P T E R 1 Ten Principles of Economics Economics P R I N C I P L E S O F N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 2009 South-Western, a part of Cengage Learning, all rights reserved
More informationExam 1 Version A A = 4; A- = 3.7; B+ = 3.3; B = 3.0; B- = 2.7; C+ = 2.3; C = 2.0; C- = 1.7; D+ = 1.3; D = 1.0; F = 0
BA 210 Exam 1 Version A Dr. Jon Burke This is a 100-minute exam (1hr. 40 min.). There are 8 questions (12.5 minutes per question). The exam begins exactly at the normal time that class starts. To avoid
More informationEconomics N. Gregory Mankiw. The Markets for the Factors of Production. In this chapter, look for the answers to these questions CHAPTER
Seventh Edition Principles of Economics N. Gregory Mankiw CHAPTER 18 The Markets for the Factors of Production In this chapter, look for the answers to these questions hat determines a competitive firm
More informationUNIT 4 PRACTICE EXAM
UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the
More informationExploring the World of Business and Economics
Chapter 1 Exploring the World of Business and Economics 1 Discuss what you must do to be successful in the world of business. 2 Define business and identify potential risks and rewards. 3 Define economics
More informationCHAPTER 2 ECONOMIC SYSTEMS, RESOURCE ALLOCATION, AND SOCIAL WELL-BEING: LESSONS FROM CHINA'S TRANSITION
CHAPTER 2 ECONOMIC SYSTEMS, RESOURCE ALLOCATION, AND SOCIAL WELL-BEING: LESSONS FROM CHINA'S TRANSITION LESSONS FROM CHINA S TRANSITION The transition of China s economy from centralized planning to a
More informationAssignment 2: Supply and Demand
Assignment 2: Supply and Demand (Reference: Mankiw and Taylor, Chapters 4, 5, 6) Multiple Choice 1. Suppose that a large dairy farmer is able to raise the market price of milk by restricting milk supply
More informationOK, I was wrong. It is a matter of supply and demand, and now I think you da man. and. Demand
P D1 D3 D2 S3 S1 S2 Q OK, I was wrong. It is a matter of supply and demand, and now I think you da man. and Demand Consumers and Producers Feel Differently About High and Low prices Producers supply more
More informationEmbedded Economies. No Net Flow of Goods. Embedded Economies - Econ. of NA - RIT - Dr. Jeffrey Burnette
Embedded Economies Embedded Economies - Econ. of NA - RIT - Dr. Jeffrey Burnette Embedded Economy - a sovereign economy contained within a larger economy. An embedded economy is different from that surrounding
More information2. What is the Law of Supply? 3. What is a Complementary Good? 4. What is a Substitute Good?
1. What is the Law of Demand? 2. What is the Law of Supply? 3. What is a Complementary Good? 4. What is a Substitute Good? 5. List the Demand Shifters: (have these memorized for the test!) T R I B E 6.
More informationPaul Krugman and Robin Wells. Microeconomics. Third Edition. Chapter 8 International Trade. Copyright 2013 by Worth Publishers
Paul Krugman and Robin Wells Microeconomics Third Edition Chapter 8 International Trade Copyright 2013 by Worth Publishers 1. A few fast facts: A. Relative to 1960, trade with other countries has become
More informationEconomics N. Gregory Mankiw. The Market Forces of Supply and Demand. Markets and Competition. In this chapter, look for the answers to these questions
Seventh Edition rinciples of Economics N. Gregory Mankiw CHATER 4 The Market Forces of Supply and Demand In this chapter, look for the answers to these questions What factors affect buyers demand for goods?
More informationEcon 200: Lecture 6 October 14, 2014
Econ 200: Lecture 6 October 14, 2014 0. Learning Catalytics Session: 47811348 1. Economic Efficiency 2. Price Ceilings and Floors and Efficiency 3. Start Taxes (if time) Reminder: Article Response Writing
More informationMultiple Choice Identify the letter of the choice that best completes the statement or answers the question.
Final day 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. What determines how a change in prices will affect total revenue for a company?
More informationAP/IB Economics Unit 2.1: Supply, Demand and Equilibrium. Welker's Wikinomics 1
Unit 2.1 Unit Overview Markets Definition of markets with relevant local, national and international examples Brief descriptions of perfect competition, monopoly and oligopoly as different types of market
More informationTen Principles of Economics
Wojciech Gerson (1831-1901) Seventh Edition Principles of Economics N. Gregory Mankiw CHAPTER 1 Ten Principles of Economics In this chapter, look for the answers to these questions What kinds of questions
More informationUnit 5: The Resource Market. (The Factor Market or Input Market)
Unit 5: The Resource Market (The Factor Market or Input Market) 1 2 The Circular Flow Model The Product Market- The place where goods and services produced by businesses are sold to households. The Resource
More informationEC101 DD/EE Midterm 2 November 7, 2017 Version 01
EC101 DD/EE Midterm 2 November 7, 2017 Version 01 Name (last, first): Student ID: U Discussion Section: Signature EC101 DD/EE F17 Midterm 2 INSTRUCTIONS (***Read Carefully***): ON YOUR QUESTION BOOKLET:
More informationCompetitive Markets: Applications
7784d_c10_409-461 5/23/01 6:48 AM Page 409 10 C H A P T E R Competitive Markets: Applications 10.1 THE INVISIBLE HAND 10.2 IMPACT OF AN EXCISE TAX Incidence of a Tax EXAMPLE 10.1 Gasoline Taxes 10.3 SUBSIDIES
More informationChapter 2: Market Forces: Demand and Supply Answers to Questions and Problems
Chapter 2: Market Forces: Demand and Supply Answers to Questions and Problems 1. a. Since X is a normal good, a decrease in income will lead to a decrease in the demand for X (the demand curve for X will
More informationSolution. Solution. Consumer and Producer Surplus
Consumer and Producer Surplus chapter: 4 1. Determine the amount of consumer surplus generated in each of the following situations. a. Leon goes to the clothing store to buy a new T-shirt, for which he
More informationBremen School District 228 Social Studies Common Assessment 2: Midterm
Bremen School District 228 Social Studies Common Assessment 2: Midterm AP Microeconomics 55 Minutes 60 Questions Directions: Each of the questions or incomplete statements in this exam is followed by five
More information2. Which of the following is a distinguishing feature of a market system? A. public ownership of all capital.
Practice Test Chapter 2 1. Which of the following is a distinguishing feature of a command system? A. private ownership of all capital. B. central planning. C. heavy reliance on markets. D. wide-spread
More informationEcon 200 Lecture 4 April 12, 2016
Econ 200 Lecture 4 April 12, 2016 0. Learning Catalytics Session 62335486 1. Change in Demand 2. Supply and the Law of Supply 3. Changes in Supply 4. Equilibrium Putting Supply and Demand Together 5. Impact
More informationThe Market Mechanism and the Impact of Regulation and Taxation
3 The Market Mechanism and the Impact of Regulation and Taxation 45 Chapter 3 Introduction In the previous chapter we examined the workings of the price system primarily in the context of markets for the
More informationThe principles of HOW PEOPLE MAKE DECISIONS
1 Ten Principles of Economics P R I N C I P L E S O F MICROECONOMICS FOURTH EDITION N. GREGORY MANKIW Premium PowerPoint Slides by Ron Cronovich 2007 update 2008 Thomson South-Western, all rights reserved
More informationLevel 1 Economics, 2013
90986 909860 1SUPERVISOR S Level 1 Economics, 2013 90986 Demonstrate understanding of how consumer, producer and / or government choices affect society, using market equilibrium 9.30 am Tuesday 26 November
More informationECON MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University. J.Jung Chapter Introduction Towson University 1 / 69
ECON 202 - MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University J.Jung Chapter 2-4 - Introduction Towson University 1 / 69 Disclaimer These lecture notes are customized for the Macroeconomics
More informationECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION
YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even Novermber 12, 2014 FORM 1 Directions 1. Fill in your scantron with your unique-id and the form number
More informationECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION
YOUR NAME Row Number ECO201: PRINCIPLES OF MICROECONOMICS FIRST MIDTERM EXAMINATION Prof. Bill Even Novermber 12, 2014 FORM 3 Directions 1. Fill in your scantron with your unique-id and the form number
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
HW 2 - Micro - Machiorlatti MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is measured by the price elasticity of supply? 1) A) The price
More information1.3. Levels and Rates of Change Levels: example, wages and income versus Rates: example, inflation and growth Example: Box 1.3
1 Chapter 1 1.1. Scarcity, Choice, Opportunity Cost Definition of Economics: Resources versus Wants Wants: more and better unlimited Versus Needs: essential limited Versus Demand: ability to pay + want
More informationa. Sells a product differentiated from that of its competitors d. produces at the minimum of average total cost in the long run
I. From Seminar Slides: 3, 4, 5, 6. 3. For each of the following characteristics, say whether it describes a perfectly competitive firm (PC), a monopolistically competitive firm (MC), both, or neither.
More informationJANUARY EXAMINATIONS 2008
No. of Pages: (A) 9 No. of Questions: 38 EC1000A micro 2008 JANUARY EXAMINATIONS 2008 Subject Title of Paper ECONOMICS EC1000 MICROECONOMICS Time Allowed Two Hours (2 Hours) Instructions to candidates
More informationCHAPTER 3 SUPPLY AND DEMAND: AN INITIAL LOOK
CHAPTER 3 SUPPLY AND DEMAND: AN INITIAL LOOK 1. This question is intended to help students develop an intuitive sense of the origins of the demand curve. If you deal with this question in class or discussion
More informationBasics of Economics. Alvin Lin. Principles of Microeconomics: August December 2016
Basics of Economics Alvin Lin Principles of Microeconomics: August 2016 - December 2016 1 Markets and Efficiency How are goods allocated efficiently? How are goods allocated fairly? A normative statement
More informationChapter 2 Market forces: Demand and Supply Demand
Chapter 2 Market forces: Demand and Supply Demand Market demand curve A curve indicating the total quantity of a good all consumers are willing and able to purchase at each possible price, holding the
More informationProduction and Cost Analysis I
CHAPTER 12 Production and Cost Analysis I Production is not the application of tools to materials, but logic to work. Peter Drucker McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. FIGURE 1-2
Questions of this SAMPLE exam were randomly chosen and may NOT be representative of the difficulty or focus of the actual examination. The professor did NOT review these questions. MULTIPLE CHOICE. Choose
More informationEconomics : Principles of Microeconomics Spring 2014 Instructor: Robert Munk April 24, Final Exam
Economics 001.01: Principles of Microeconomics Spring 01 Instructor: Robert Munk April, 01 Final Exam Exam Guidelines: The exam consists of 5 multiple choice questions. The exam is closed book and closed
More informationGregory Clark Econ 1A, Fall Midterm 2. Closed book exam. No calculators, cell phones, or other electronic aids allowed.
Gregory Clark Econ 1A, Fall 2012 Midterm 2 Closed book exam. No calculators, cell phones, or other electronic aids allowed. Instructions: Answer these multiple choice questions on your Scantron. Write
More informationGregory Clark Econ 1A, Fall Midterm 2. Closed book exam. No cell phones, calculators, or other electronic aids allowed.
Gregory Clark Econ 1A, Fall 2012 Midterm 2 Closed book exam. No cell phones, calculators, or other electronic aids allowed. Instructions: Answer these multiple choice questions on your Scantron. Write
More information1 Ten Principles of Economics CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 0
1 Ten Principles of Economics CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 0 In this chapter, look for the answers to these questions: What kinds of questions does economics address? What are the principles of
More informationBoğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I , Tuesday 11:00 Section 06 TYPE A
NAME: NO: SECTION: Boğaziçi University, Department of Economics Spring 2016 EC 102 PRINCIPLES of MACROECONOMICS MIDTERM I 15.03.2016, Tuesday 11:00 Section 06 TYPE A Do not forget to write your full name,
More informationThe exam has a total of 50 questions (100 points). You will have 75 minutes to complete the exam. Good Luck!
Econ 111 Practice Midterm 1 The exam has a total of 50 questions (100 points). You will have 75 minutes to complete the exam. Good Luck! Print your Name Sign the honor Pledge affirming that you have neither
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 informationWhere Prices Come From: The Interaction of Demand and Supply
R. GLENN HUBBARD ANTHONY PATRICK O BRIEN Microeconomics FOURTH EDITION CHAPTER 3 Chapter Outline and Learning Objectives Where Prices Come From: The Interaction of Demand and Supply 3.1 The Demand Side
More informationProblem Set 1: Tariffs and Quotas Universidad Carlos III de Madrid Economics of European Integration
Problem Set 1: Tariffs and Quotas Universidad Carlos III de Madrid Economics of European Integration Problem 1. Suppose there are only two countries in the world (Home and Rest of the World) which produce
More information2) All combinations of capital and labor along a given isoquant cost the same amount.
Micro Problem Set III WCC Fall 2014 A=True / B=False 15 Points 1) If MC is greater than AVC, AVC must be rising. 2) All combinations of capital and labor along a given isoquant cost the same amount. 3)
More informationECON 1010 Principles of Macroeconomics. Midterm Exam #1. Professor: David Aadland. Spring Semester February 14, 2017.
ECON 1010 Principles of Macroeconomics Midterm Exam #1 Professor: David Aadland Spring Semester 2017 February 14, 2017 Your Name Section 1: Multiple Choice and T/F (60 pts). Circle the correct answer;
More informationEssential Graphs for Microeconomics
Essential Graphs for Microeconomics Basic Economic Concepts! roduction ossibilities Curve Good X A F B C W Concepts: oints on the curve-efficient oints inside the curve-inefficient oints outside the curve-unattainable
More informationPure Monopoly. McGraw-Hill/Irwin. Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
10 Pure Monopoly McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Four Market Models Characteristics of the Four Basic Market Models Characteristic Number of firms
More informationEfficiency and Fairness of Markets
Efficiency and Fairness of Markets Chapter 6 CHAPTER IN PERSPECTIVE In Chapter 6 we study the equilibrium quantities of goods, services, and factors of production to determine if markets are efficient.
More informationConsumers, Producers, and the Efficiency of Markets
Consumers, Producers, and the Efficiency of Markets PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 Welfare economics Consumer Surplus How the allocation of resources affects
More informationPlanning for and Recruiting Human Resources
fundamentals of Human Resource Management 4 th edition by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright CHAPTER 5 Planning for and Recruiting Human Resources McGraw-Hill/Irwin Copyright 2009 by
More information