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

TECON 101 Week 3 Notes

by: Kelsey Rowley

TECON 101 Week 3 Notes TECON 101

Kelsey Rowley
University of Washington Tacoma
GPA 3.64

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 what we discussed in week 3. Topics include supply, demand, price, and equilibrium.
Class Notes
25 ?




Popular in ECONOMICS (I&S,QSR)

Popular in Economics

This 6 page Class Notes was uploaded by Kelsey Rowley on Friday October 14, 2016. The Class Notes belongs to TECON 101 at University of Washington Tacoma taught by in Fall 2016. Since its upload, it has received 6 views. For similar materials see ECONOMICS (I&S,QSR) in Economics at University of Washington Tacoma.

Similar to TECON 101 at University of Washington Tacoma

Popular in Economics


Reviews for TECON 101 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: 10/14/16
WEEK 3 NOTES Monday 10/10 Monday, October 10, 2016 10:56 AM Overview  Demand  Supply  Equilibrium, price and To-Do  Read Chapter 7 sometime this week (according to syllabus)  Homework 1 in Canvas (due Tuesday 10/11 - 11:59pm) Chapter 4 - Supply and Demand continued… Supply and Demand Quantity Demanded: Amount of goods that a buyer is willing  and able to buy over a particular time period o Usually in a graph, also called "demand curve"   Demand Schedule: How much of a good or service consumers will buy at different price o Ex. When price of pizza goes up, your demand for pizza goes down o Usually in a chart Pizza Deman d $5 6 $7 4 $9 0  Law of Demand: Holding everything else constant (ceteric peribus), when price increases, the quantity demand will decrease o Individual demand curve  Different from person to person o Market demand curve: For each price, the quantity demand for the whole market  All the individual demand curves added together o What changes demand? What causes demand curve to shift? (NOT holding everything else constant)  Income  Inferior goods: when your income increases, your demand decreases  Ex. Fast food (Rich people buy less fast food)  Normal goods: when your income increases, your demand increases  Price of related goods  Substitute: When a fall in the price of one good reduces the demand of another Same direction! Price of sugar , Demand of substitute of sugar (HFCS)  Ex. Sugar (expensive) and high fructose corn syrup (cheap)  Ex. Branded and generic prescriptions  Complement: A fall in the price of one good will increase the demand of another good (shift demand curve Opposite direction! Price of ink , Demand of complement of ink (printer)  Ex. Fall in price of ink, increase in demand of printers  Gateway drug hypothesis: Tobacco is a gateway drug to marijuana therefore tobacco is a complement of marijuana Number of buyers o More buyers, more demand - Less buyers, less demand o High birth rate/low death rate, migration  Taste o Ex. Advertising "green" or "organic," increases demand  Expectation o Ex. If someone expects their income to increase soon, their demand increases now o Ex. Black Friday  Scenario: WA Dept of Transportation hires you to reduce traffic in Seattle. What are your strategies? o Advertise "green" - change taste o Subsidize transportation: make more transportation available - change substitute o Increase price of parking - change complement o Increase price of fuel - change complement o Limit number of license - change number of buyers o Impose a toll - change price  Movement along demand curve vs shifting demand curve o Changing price will move along demand curve o Changing the above things will shift entire demand curve Wednesday 10/12 Wednesday, October 12, 2016 10:58 AM Overview  Extra credit opportunity: Minimum wage debate  Talk about homework and test  Supply  How price is determined  Discussion/exercise To-Do  Read Chapter 7 sometime this week (according to syllabus)  Optional: Minimum wage debate paragraph (@Tacoma Public Library 6:30pm on Wed) (due Friday)  Homework 2 (due Tues 10/18 11:59pm)  Test (Ch 1,2,4,7) on Monday 10/24 Extra Resources  Minimum wage debate paragraph (@Tacoma Public Library 6:30pm today)  Ballotpedia - Washington State Initiatives Chapter 4 - Supply and Demand continued… How to change quantity demanded?  Reduce price  Shift the demand curve o Income o Substitute and complement o Taste o Expectation o Number of buyers  Supply o Quantity supplied: the amount of goods and services sellers are willing and able to sell o Supply schedule: a table that shows quantity supplied at each price Daniel's Supply Schedule Price Quantity Supplied $10.35 16 hours $20 20 hours $25 30 hours  Supply curve - upward sloping supply curve o Law of Supply: Everything else being equal, when a price increases the quantity supplied also increases.  Everything has a cap. Daniel won't work more than 60 hours even if you pay him $200/hr. If you pay him $250, he might reduce his hours  Individual supply vs market supply o Individual supply - one person's supply o Market supply - all individual supplies added together  Shifting supply curve - What factors shifts the supply curve (change the supply)? o Input price  Ex. Sugar for ice cream  Categories of input price  Materials  Physical capital  Human capital  Technology o Technology  Fracking happens o Expectations  Ex. If you expect price of ice cream to rise, you will supply less ice cream today (shift curve to left) o Number of sellers  Anti-trust law: against monopolies  When patent expires  Natural resources o Tax or subsidy  Tax shifts supply curve left  Subsidy shifts supply curve right  How price is determined o Where demand curve and supply curve intersect  Equilibrium Quantity  Equilibrium Price ("Market clearing price")  Equilibrium: No gain from deviation, the result of optimizing Friday 10/14 Friday, October 14, 2016 11:03 AM Overview  Extra credit opportunity: Minimum wage debate  Supply  Equilibrium  Discussion/exercise To-Do  Read Chapter 7 sometime this week (according to syllabus)  Optional: Minimum wage debate paragraph (@Tacoma Public Library 6:30pm on Wed) (due today)  Homework 2 (due Tues 10/18 11:59pm)  Test (Ch 1,2,4,7) on Monday 10/24 Chapter 4 - Supply and Demand continued…  Where demand curve and supply curve intersect  Equilibrium Quantity  If move down on graph, you get excess demand  Equilibrium Price ("Market clearing price")  If move up on graph, you get excess supply/surplus  Equilibrium: No gain from deviation, the result of optimizing  Why are gas stations right next to each other?  So they catch the same market share - "Game Theory"  You go to the gas station that is closest. If they are right next to each other, then they attract the same amount of people.  How events change equilibrium price and equilibrium quantity (Ex. When summer comes, how will the eq price and eq quantity for ice cream change?)  Decide whether that event shifts supply or demand or both  Ex. It will increase demand, not supply  Decide in which direction the curve shifts  Ex. Demand curve will shift to right, supply stays the same  See how the shifts change the equilibrium price and equilibrium quantity  Ex. Price increases Discussion  Reason for oil price decreasing  Demand  Technology - More fuel efficiency  China's, Europe's, and developing countries growth slows  Supply  Technology - Fracking  More domestic oil  OPEC has not decreased supply  OPEC wants to kick out and bankrupt the fracking companies  Iran's sanction is lifted


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

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 I made $280 on my first study guide!"

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.