Macroeconomics Notes- Week 3
Macroeconomics Notes- Week 3 21031
Arkansas Tech University
Popular in Principles of Economics 1
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This 3 page Class Notes was uploaded by Camille Dale on Monday January 25, 2016. The Class Notes belongs to 21031 at Arkansas Tech University taught by John R Walker in Spring 2016. Since its upload, it has received 21 views. For similar materials see Principles of Economics 1 in Business at Arkansas Tech University.
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Date Created: 01/25/16
Macroeconomics Consumers well all have unlimited wants w limited resources Demand Schedule for gasoline Price T Amount of Gas l amp vice versa Quantity A 300 28 gallons Price 500 20 gallons 700 10 gallons 200 35 gallons 100 40 gallons Quantity Data Points xy As price decreases quantity increases Law of Demand buy more at a lower price than at a higher price Demand shows how willing amp able you are to buy something at various prices as conditions exist in a moment Demand schedule is subject to change based on multiple factors all hypothetical if situation Factors include tastes amp preferences income price of complements price of substitutions expectations and of buyers cause curve to fluctuate 1 Tastes amp Preferences styles fads events causing emotion 2 Income demand would increase if you get more income but demand would decrease with lowered income changes the demand curve 3 Substitutions Coke vs Pepsi or Coffee vs Tea one good that can be used in place of another because they re similar what happens determines demand of the other 4 Complements products that go well together E Coffee amp nondairy creamer when coffee demand goes up so does demand for the creamer 5 Expectations if you expect something to happen it can affect your current demand if you think it ll be cheaper later your demand is not as high as when it will be on sale later 6 Number of Buyers adding or decreasing buyers doesn t affect individual demand Aggregate Demand how many people in general demand the product Producers in business to make a profit Consider how much you need to sell amp for how much in order to make a profit also how much it costs to make per unit p Q Price A 1 100 2 300 Supply 3 700 B Change in points A amp B shows the change in 4 900 A quantity supply 5 1500 gt Quantity Producers are more willing to produce at a higher price than a lower one Determinants of Supply 1 Input Prices necessities for your industry if cost of input goes up the business might fail because they re not making enough profit to keep up 2 Technology reduces the amount of labor to produce a product therefor raising your supply better faster etc 3 Expectations expecting the price of a product to go down because of decreased demand so you stop making as much 4 Number of Sellers how much of something a person is selling does not affect how much you sell At that price buyers are willing and able to buy amp producers are willing and able to produce at this same price A PrIce Supply Demand Called the Market Price For who how much of it and EqUIIIbrIum PrIce amp at What cost gt Demand Quantity A
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