Week of September 8 - 12
Week of September 8 - 12 EC 2113
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This 3 page Class Notes was uploaded by Grey Garris on Saturday September 12, 2015. The Class Notes belongs to EC 2113 at Mississippi State University taught by Heriberto Gonzalez Lozano in Summer 2015. Since its upload, it has received 66 views. For similar materials see Principals of Macroeconomics in Economcs at Mississippi State University.
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Date Created: 09/12/15
EC 2113 Lecture Notes Week of September 8 12 Demand and Supply Curves and the Market t Price Supply Demand QUEH TIquot it39y o The intersection of the Demand and Supply Curves is the Market Equilibrium Price and Quantity which means that both sellers and buyers are happy at that price for the product and the amount being producedconsumed 0 Any shift in the Demand or Supply curves will change this point 0 If the current production of a good lies anywhere that is not the Market Equilibrium point then there is a Surplus or a Shortage I Surplus A surplus exists when the price is higher than the Market Equilibrium price At a higher price suppliers will produce more than people are willing to buy at that price so there is extra product Educational Cunsultants Surging rantnth Quantity I Shortage A shortage exists when the price is lower than the Market Equilibrium price At a lower price suppliers will produce less of the product than people are willing to buy so there isn t enough product v Burial Printre gt gt Price Emailing 39hail Shiaxrtarg Damanu l I I I I I I I I I I I I I 0 Quantity Ignore the price ceilingquot thing for now 0 together a number of different results are possible Shifts in the Demand and Supply curves can occur independently or together When they occur I Shift in Supply Shift in Demand Eguilibrium Price Eguilibrium Quantiy Increase Decrease Decrease Decrease Increase lncrease lncrease lncrease Increase Decrease Decrease Decrease 0 Variations in what can happen exist because the shift in the curves may be greater for one curve than for another As such there are situations where the new Market Equilibrium Price or Quantity may be indeterminate or impossible to say without data represented by quot On the following page are a series of graphs and their explanations as to how shifts in Demand and Supply can affect the Market Equilibrium m Q P new gnaw hai New Jr eGh Dl f mama Fanje JW EGQ wan YEW I mV39s im PW UG ien a awarei Juarca Ghaani Thig wm PSSHMW 1115 wan Pagi mw mF h i censwr maxies EPer 35 w Wewnws which 51951 Car WMHW 5 50 dEkSi minmi39 EH BMW whian 5 m Der Md 3 Sr rm devstawm mr med Cuer Wm Ef gy63453 b wmas L quot baa S 92 E1 Prime dampen 535g P in EE me a v iincmousas 31 P1 P6 a m I DAL DI Gigq arm hmra d WemaM U i nGramse m gm 4 MW no pnmaam P ce 2 inamse in Mun iJ wzm M MCMSE W Price 33 Mamas in mn w wn m aagmse a Pmcc ma a an i namsain S pw hm dmpemngr i C mbini 3 1 Abova TWG EWCfS amxomas basead can Whacsn EMF4v Mums lama