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

ECN 150: Week 3 Notes

by: Alexis Ibarra

ECN 150: Week 3 Notes ECN 150

Marketplace > La Salle University > Economcs > ECN 150 > ECN 150 Week 3 Notes
Alexis Ibarra
La Salle
GPA 3.89

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

Week 3 notes of ECN 150: Intro to Macroeconomics
Francis Thomas Mallon
Class Notes
25 ?




Popular in Macroeconomics

Popular in Economcs

This 4 page Class Notes was uploaded by Alexis Ibarra on Friday February 5, 2016. The Class Notes belongs to ECN 150 at La Salle University taught by Francis Thomas Mallon in Summer 2015. Since its upload, it has received 18 views. For similar materials see Macroeconomics in Economcs at La Salle University.


Reviews for ECN 150: Week 3 Notes


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: 02/05/16
WEEK 3 NOTES 2/1/16     Price vs Cost  Price: What you have to expend in order to buy the product in the market place.  Cost: What needed to be incurred to make the product available for sale in the market  place.   A supplier’s cost per unit will depend on the efficiency of their operation.      Simplifying assumption 1: As long as the market price exceeds the supplier’s cost per unit, the supplier will elect to produce and sell the product.      Simplifying assumption 2: The greater the positive differential between price and cost per unit, the greater the quantity of  product the supplier will elect to produce and sell will be.  Example:  Supplier:   A B C D      Cost/unit:  $7         $9         $3       $37.50 Selling Price A  B C D Quantity $10 4 2 9 0 15 $8 2 0 8 0 10 $6 0 0 5 0 5 (If the selling price exceeds the cost the supplier will spend, the supplier will sell the product.) (The larger the positive differential, the greater the quantity that the supplier will produce.)  A change in quantity supplied: There’s a change in the market price of the good which  causes a MOVEMENT along an existing supply curve. (Change in quantity supplied, not  supply!)  Outside variables that can affect the cost per unit, will affect the supply of the good.   When the cost decreases: The price decreases.   When the cost increases: The price increases. 2/3/16  Demand: Inverse relationship between quantity and price!  Quantity demanded decreases, price increases.  Quantity demanded increases, price decreases.  Downward slope  Supply: Direct relationship between quantity and price!  Quantity willingly supplied decreases, price decreases.  Quantity willingly supplied increases, price increases.  Upward slope  A change in supply: When there is a change in an outside variable capable of influencing  the supply of the good, there is a SHIFT of the entire curve.  Downward to the right: increase in supply  Upward to the left: decrease in supply  Example: If a sweater company loses 25% of their raw material during the process of  making sweaters, the sweaters might have a market price of $9. If they improve the  process of making sweaters, and only lose 5% of their raw material, the market price  of the sweaters will go down. (Maybe $7 per sweater now).  Equilibrium: Point where supply and demand are the same.   It is the price where the quantity willingly demand=quantity willingly supplied.  Efficient   Surplus: When quantity willingly supplied exceeds the quantity willingly demanded, a  surplus comes to exist.  Occurs when the market price is set above equilibrium.  Suppliers will then advertise a SALE. (downward pressure on market price)  Quantity willingly supplied decreases  Quantity willingly demanded increases  **This will continue until equilibrium is achieved!!     Shortage: When the quantity willingly demand exceeds the quantity willingly supplied, a  shortage comes to exist.  Occurs when the market price is set below equilibrium.  Suppliers will then RAISE the price  Quantity willingly demanded increases  Quantity willingly demanded decreases  **This will continue until equilibrium is achieved!! 2/5/16  A variable that can change but is NOT an outside variable: Price  Price change can only be an outside variable when it’s the price for a complimentary or  substitute good.  Example: A change in the price of gasoline (a complimentary good of automobiles)  will decrease the demand for automobiles. This would cause a shift in the demand  curve for automobiles. This would result in a lesser price for cars.      Step by Step Sequence:  Has an outside variable changed? (excellent growing conditions of grapefruit)  If so, which curve is effected by this outside variable (supply or demand)? (Supply)  Does the effected curve increase or decrease? (increase)  Given the shift of the effective curve, is there immediately a surplus or a shortage  created? (surplus)  Given the presence of a surplus or shortage, what will be the natural workings of the  marketplace to restore equilibrium? (sale: price decrease)     Step by Step Sequence (Example 2):  Has an outside variable changed? (it is a warm winter)  If so, which curve is effected by this outside variable (supply or demand)? (demand)  Does the effected curve increase or decrease? (decrease)  Given the shift of the effective curve, is there immediately a surplus or a shortage  created? (surplus)  Given the presence of a surplus or shortage, what will be the natural workings of the  marketplace to restore equilibrium? (sale: price decrease)


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

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."

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

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.