×

Let's log you in.

or

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

×

or

by: Randi

9

1

4

ECON 2105 Week 3 notes ECON 2105

Randi
UGA
GPA 4.0

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

×
Unlock Preview

These notes cover law of supply and demand. They also cover graphing the supply and demand functions
COURSE
Macroeconomics
PROF.
McWhite
TYPE
Class Notes
PAGES
4
WORDS
CONCEPTS
supply, demand, quantitydemanded, Expectations, consumers, quantitysupplied, market
KARMA
25 ?

Popular in Macro Economics

This 4 page Class Notes was uploaded by Randi on Saturday September 3, 2016. The Class Notes belongs to ECON 2105 at University of Georgia taught by McWhite in Summer 2016. Since its upload, it has received 9 views. For similar materials see Macroeconomics in Macro Economics at University of Georgia.

×

Reviews for ECON 2105 Week 3 notes

×

×

What is Karma?

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

Date Created: 09/03/16
Week 3 Notes ECON 2105 PROF. MCWHITE RECAP:  Law of Demand: o Ceteris paribus o As prices decrease, quantity demanded of a good will increase o As prices increase, quantity demanded of a good will decrease  This is an inverse relationship!! o ONLY a change in PRICE causes a change in QUANTITY DEMANDED What causes a change in DEMAND? Everything EXCPET the price of the product! 1. Consumer income 2. Prices of related goods (substitutes/compliments) 3. Consumer tastes 4. Expectations of future events 5. Number of buyers in the market VOCAB Relating to the Law of Demand:  Normal Goods: o When income increases, demand increases (shifts right) o Example: You enjoy steak. When your income increased, you began to buy more steak. Price Demand 2 Demand 1 Quantity Demand ed Week 3 Notes  Inferior Goods: o As income increases, demand for a good decreases (shifts left) o Example: You usually buy a lot of spam when you are tight on money. As your income increases, instead of buying spam, you choose to buy more steak. Price Market for Spam D2 D1 Quantity Demand ed  Substitutes o These are goods that are pretty much the same and can be substituted o As the price for one good increase, the demand for its substitute increase o For example: As the price for Pepsi increases, the demand for Coke increases o Market for Coke Price D2 D1 Quantity Demand ed Week 3 Notes  Compliments o A good that goes along with another good o For example: You always eat peanut butter and jelly together. If the price of peanut butter increases, then the demand for jelly decreases. Market for Jelly Price D1 D2 Quantity Demand ed Week 3 Notes  Law of Supply: o The higher the price of a good, the greater will be the quantity supplied o This is a direct relationship o Change in QUANTITY SUPPLIED not SUPPLY What causes a change in SUPPLY? Everything EXCPET price of the product! 1. INPUT PRICES  What goes into creating the product? 2. TECHNOLOGY  What technology is used to create the product? 3. EXPECTATIONS 4. NUMBER OF SELLERS  Quantity Supplied: o The amount of a good that sellers are willing and able to sell o If a firm isn’t willing AND able, it is NOT part of the market

×

25 Karma

×

×

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."

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the material...plus I made \$280 on my first study guide!"

Bentley McCaw University of Florida

Forbes

"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

STUDYSOUP CANCELLATION 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 support@studysoup.com

STUDYSOUP REFUND POLICY

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: support@studysoup.com

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 support@studysoup.com