New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Intro to Macroeconomics Week 2 notes Chapter 4

by: Bradley Notetaker

Intro to Macroeconomics Week 2 notes Chapter 4 22260

Marketplace > University of Memphis > Economcs > 22260 > Intro to Macroeconomics Week 2 notes Chapter 4
Bradley Notetaker
University of Memphis
GPA 3.75

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes cover the lectures of week 2.
Intro to Macroeconomics
Class Notes
25 ?




Popular in Intro to Macroeconomics

Popular in Economcs

This 4 page Class Notes was uploaded by Bradley Notetaker on Tuesday January 26, 2016. The Class Notes belongs to 22260 at University of Memphis taught by Speer in Winter 2016. Since its upload, it has received 14 views. For similar materials see Intro to Macroeconomics in Economcs at University of Memphis.

Similar to 22260 at University of Memphis


Reviews for Intro to Macroeconomics Week 2 notes Chapter 4


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/26/16
Chapter 4 1­26­16 Week #2 Markets  Market Price:  The price which buyers and sellers conduct transactions Competitive Markets  Perfectly Competitive Market:  All sellers sell an identical good or service  Every buyer pays and every seller charges same price  No buyer or seller is big enough to influence the market price Quantity Demanded   The amount of a good that buyers are willing to purchase @ a given price Demand Schedule   A table that shows the quantity demanded @ different prices, holding all else equal Demand Curve (described as “downward sloping” as prices go down quantity goes up)  Plots the quantity demanded @ different prices Law of Demand   Holding everything else equal (“Ceteris Paribus”:all or other things being equal), a  decrease in prices means quantity demanded will go up (vice versa). o In other words, demand curves slope  Why does demand slope down? 1) People have different “willingness to pay” for things 2) Diminishing marginal benefits  As you buy/consume something, the less extra benefit you get Market Demand Curve   The sum of the individual demand curves of all potential buyers o Market demand curve plots relationship between total quantity demand and  market price  Demand curve shifts to the left: o Decrease in Demand  Demand curve shifts to the right: o Increase in Demand Shifts of the Demand Curve  Occurs when one of the following changes: 1) Tastes and preferences 2) Income and Wealth  Normal good: Income goes up , demand increases  Ex. You earn more income, so you buy more and better clothes  Inferior good: when income goes up, demand decreases  Ex. You earn more income, so you buy less Ramen Noodles 3) Prices of related goods (substitutes/complements)   Ex. Hot dogs can substitute hamburgers. Fries can complement a  hamburger 4) Number and scale of buyers 5) Buyer’s expectations about the future   When the price of a good changes, we moveALONG  the demand curve.  When something else changes, for instance your income, wSHIFT  the demand  curve.  Supply Curve (upward sloping)  Quantity supplied   The amount of a good that sellers are willing to sell at a given price  Supply Schedule  A table that reports the quantity demanded at different prices  Supply Curve  Plots the quantity supplied  1­28­16 Chapter 4 Cont. Market Supply Curve  Plots relationship between the total quantity supplied Shifts of Supply Curve  Occurs when one of the following changes: 1) Input prices… if input goes up, decrease in supply (vice versa)  Something a firm uses to produce its product (“output”) 2) Technology 3) # and scale of sellers 4) Seller’s expectations of the future Competitive Equilibrium  Point at which the market comes to an agreement about what the price will be  (competitive equilibrium price) and how much will be exchanged (competitive  equilibrium quantity) at that price.  Quantity demanded = Quantity supplied Equilibrium price or Market – clearing price  Equilibrium is where there is no SHORTAGE or SURPLUS. The number of  buyers equals thee amount supplied. Surplus  Amount supplied is more than the amount demanded Shortage  Amount demanded is higher than the amount supplied  As quantity goes up, price may or may not go up. May go down  As demand goes up and supplied goes down, the price goes up and quantity may  or may not go down.  As demand goes down and supplied goes down, then quantity goes down and  price may or may not go up. Price floor  Illegal to charge a price below the set price set by gov.  Ex. Minimum wage


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.