EC 200-B01

Law of demand (review, this is consumer behavior)

xy axis, x=qty, y=$, OTE (other things equal; negative slope)

Law of Supply (producer behavior)
the higher benefit gained, the more production (OTE, positive slope)

as cost goes down, supply curve moves right of 0 point axis

discussion of surplus capacity – combined xy-axis graph

when surplus + “perfect knowledge,” consumers can be found

“surplus” only has meaning at a given price in economics

surplus supply = price falls
surplus demand = price rises

List of “Other Things” which may or may not be Equal
Market Size
Tastes & Preferences
Other goods
– complements
– substitutes
Incomes
Expectations

a. if Price@equilibrium goes up, Quantity@equilibrium goes up
b. if Pe down, Qe down
c. if Pe up, Qe up
d. if Pe down, Qe up

FOR TEST: what will happen to Eq price & qty if (demand/supply) goes (up/down)? Be able to draw/generate S/D curves on xy axis, nothing like Sirkin’s class tho!

what happens to ep & eq if cost goes up?

write a random paper on S&D

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