10/13 & 10/15 micro-econ. notes w/ prof. Mike
10/13 & 10/15 micro-econ. notes w/ prof. Mike ECON 201
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This 3 page Class Notes was uploaded by Cal Clark on Monday October 19, 2015. The Class Notes belongs to ECON 201 at a university taught by Mike Paruskziewicz in Fall 2015. Since its upload, it has received 16 views.
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Date Created: 10/19/15
Portland Stte UNlVlERSITY Prof Mike ECON 201 October 13th 2015 Lecture Notes Quiz A lot of different right answers consumer expectations change in income etc Factors that cause a shift left or right in demand affect demand I said supply At the equilibrium QS QD Factors that are variables dependent on demand affected by demand Review Demand schedule is a demand graph or table Market demand versus individual demand the quantity demanded in the market is the sum of the 0393 by all buyers in the market Supply schedule is a supply graph or table Expectation of profitability affects the supply schedule Ex Cost of flour if you are a baker Multiplier effect in a macro economy Variables that influence seers Variable A change in this variable Price Causes a movement along the S curve lnput Prices Shifts the S curve Technology of Sellers Expectations What about gas Leads into Elasticiityl Portland Stte UNlVlERSITY Prof Mike ECON 201 October 15th 2015 Lecture Notes Ex 3 A shift in both supply and demand Events Price of gas rises AND new tech reduces prod costs Step 1 Both curves shift Step 2 Both shift to the right Step 3 Q rises but effect on P is ambiguous lf demand increases more than supply P rises How much one variable responds to changes in another variable Ex If you raise the price of your website how much will demand fall Def Numerical measure of the responsiveness of 0393 or QS to one of its determinants Price elasticity of demand Percentage change in QDPercentage change in P For the test remember Qs over Psi Standard method of computing percent change end value start valuestart value X 100 end value start valuemidpoint X 100 Ex P1 70 01 5000 P2 90 02 3000 see handwritten attachment Perfectly inelastic demand D curve vertical Consumer s price sensitivity none Elasticity 0 Inelastic demand D curve relatively steep Consumer s price sensitivity Relatively low Elasticity lt1 Unit elastic demand D curve intermediate slope Consumer s price sensitivity intermediate Elasticity 1 Elastic demand D curve relatively flat Consumer s price sensitivity relatively high Elasticity gt1 66 W Portland State U NHVERSITY 139
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