Economics 201 wk 4 notes
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This 2 page Class Notes was uploaded by Katie Conner on Saturday February 6, 2016. The Class Notes belongs to Econ 201 at a university taught by Donna Bueckman in Spring 2016. Since its upload, it has received 23 views.
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Date Created: 02/06/16
Econ wk 4 Supply and Demand Markets and competition Marketanything that brings together buyers and sellers Competitive marketmarket with multiple buyers and sellers Perfectly competitivebuyers and sellers don’t influence price Rational people Systematically and purposefully tries to achieve objectives Evaluates costs and benefits of marginal analysis Marginal analysismaking incremental adjustments to an existing plan Demand There must be a willingness and an ability to buy Quantity demandedamount of a product wanted at a given price Law of demandclaim that the quantity demanded of a good falls when its price (P) rises; when price changes demand will change Demand schedulelist of prices and quantities Demand curvegraph of demand schedule Market demand vs individual demand Demand curve shifters number of buyers income and inferior goods: as income goes up, demand for cheaper goods goes down prices of related goods (substitutes) compliments: when price for one goes up, demand for its compliment goes down tastes: peoples taste/preferences change over time expectations Terms for shift vs movement along the demand curve Change in demanda shift on the curve; nonprice determinant changes Change in quantity demandeda movement along a fixed curve; occurs when price changes Supply Must be a willingness and ability to sell Quantity supplied Law of supplythe claim that the quantity supplied of a good rises when its price rises The supply schedule Supply curve shifters (nonprice determinant) number of sellers input prices technology expectations government policy natural production conditions prices of substitutes in production Terms for shift vs movement along curve Change in supplya shift in the curve Change in quantity supplieddetermined by change in price
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