Managerial Economics Week 4 Notes
Managerial Economics Week 4 Notes 28-1112-05
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This 2 page Class Notes was uploaded by Jessica Notetaker on Saturday February 20, 2016. The Class Notes belongs to 28-1112-05 at Columbia College Chicago taught by David Sikich in Winter 2016. Since its upload, it has received 19 views. For similar materials see Managerial Economics in Entrepreneurship at Columbia College Chicago.
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Date Created: 02/20/16
Managerial Economics Week #4 Supply & Demand ● In order for products to exist there must Sellers & Buyers Supply: Ability and Willingness to produce within availability Demand: Ability to buy quantities of products at specific prices Bartering:xchange of goods and services without money Not considered part of the market place MAIN CONFLICT: Sellers want the most money Buyers want the best deal Product Market: Someone tries to sell to you (consumer) Factor Market: onsumers do the selling EX. Job interviews Market Supply Curve Vs. Demand Curve ● Opposite Curves ● Supply curve always goes to the right and upward ● Demand curves to the right and downward Equilibrium Price:“Sweet Spot” Where price satisfies both supply and demand needs Most commonly found using trial and error Doesn’t always satisfy both parties EX. Seller had to lower price a little to keep with demand Market Shortage: Producers prefer: Raise price due to low resources Market Surplus: Consumers Prefer: Lower demand with extra resources leads to lower prices Order Of Importance Market Supply Market Demand Technology Tastes (desire) Factor Cost Spendable Income Competition Expectations Expectations Other Goods Other Goods Number of Buyers ● Supply & Demand is always shifting (Competition, wants, availability) ● Natural disasters can influences changes Price CeilingPrice is higher or lower than equilibrium determined by market forces Price Floor: Government sanctioned limit on minimum cost of products (must be higher than equilibrium to be effective)