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

ECON 142 Week 2 Notes

by: Noah Johnston

ECON 142 Week 2 Notes Econ 142

Marketplace > Kansas > Economics > Econ 142 > ECON 142 Week 2 Notes
Noah Johnston

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 parts of Chapter 3 and 4! A lot of supply and demand, equilibrium, and consumer/producer surplus.
Dr. Brian Staihr
Class Notes
Econ, 142, Microeconomics, market equilibrium, consumer surplus, supply and demand
25 ?




Popular in Microeconomics

Popular in Economics

This 3 page Class Notes was uploaded by Noah Johnston on Thursday September 1, 2016. The Class Notes belongs to Econ 142 at Kansas taught by Dr. Brian Staihr in Fall 2016. Since its upload, it has received 38 views. For similar materials see Microeconomics in Economics at Kansas.


Reviews for ECON 142 Week 2 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: 09/01/16
ECON 142 Week 2 Notes Demand Shift Factors (1 and 2 are located on Week 1 Notes) 3. A change in taste/preferences If something gets popular, demand curve moves to the right. If something falls out of style, demand curve shifts to the left. 4. A change in expectations If people expect the price of a good to be higher in the near future, demand curve will shift to the right in the present. If they expect the price to be lower in the future, they’ll wait to buy and the demand curve will shift to the left in the present. 5. Population and demographics Could also be considered the “number of buyers”. As overall population increases, so does the number of buyers, so demand increases and shifts to the right. As SPECIFIC types of population increase, different types of products will increase in demand. SUPPLY Supply curve slopes up while demand curve slopes down. Just like with demand, when you change the price, you move along the curve, and its called a change in the quantity supplied. But when you change something else, it’s a change in supply. Supply Shifters 1. A change in technology A positive technology change: A new way to make something, or a breakthrough of some sort will result in a supply curve shift to the right! A negative technology: If a factory blows up or something, will result in a shift to the left. 2. A change in the price of inputs Materials needed to make a product (like burger for McDonalds) are called inputs. If the price of burger goes up, supply curve will shift to the left. If the price of burger goes down, then curve will shift to the right. 3. A change in expectation This affects the opposite way of demand. With supply curves, if you think prices will go down in the future, then you supply more today. If you think prices will go up in the future, then you supply less today. 4. A change in the number of sellers This one is pretty self-explanatory: an increase in the number of sellers will increase the supply curve, and vice versa. 5. A change in prices of substitutes in production Let’s say a farmer in Kansas has 400 acres of land, and currently grows wheat with his land. He could use this land to supply soybeans, though. The price of soybeans skyrockets, and the farmer decides to switch to soybeans because he can make a lot more money. The supply of wheat has now decreased, causing a shift to the left. Equilibrium: The price and quantity for supply and demand is equal at a specific number. If market price is above equilibrium, people want to supply this. But few want to demand it since the price is so high, so you’ll have excess supply. That’s when they lower the price so they can get rid of their excess. If market price is below equilibrium, few want to supply, but everyone wants to buy. Suppliers will increase the price to decrease the demand, and this will get it back towards equilibrium. Chapter 4 Consumer Surplus: the difference between what one is willing to pay and what one has to pay. Measured in dollars. P=a-b(Q) ------> Inverse Demand Function (slopes down) When it is ‘Q=’ -----> Demand Function (slopes down) P=a+b(Q) -----> Inverse Supply Function (Slopes up) When it is ‘Q=” -----> Supply Function (slopes up) To find equilibrium, set the supply and demand equations equal to each other! Customer are better off when customer surplus gets bigger, and worse off when it gets lower. Producer Surplus: Difference between lowest price a company would accept and price it actually receives for a good or service. Both of these surpluses combined is called the economic surplus. Deadweight Loss: Reduction in economic surplus that results when the market isn’t efficient. THINGS TO REMEMBER: The 5 things that affect demand curve and the 5 that affect supply curve. Staihr said multiple times these will be all over the tests! Also, the equations to find supply and demand will be used all semester as well.


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

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!"

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.