Table of Contents
Demand and Supply
Today we will cover:
Demand
Demand may be expressed as ...
Demand Cont’d
The Most Important Determinant: PRICE
No Giffen goods in this class!
When can you sell more if you raise the price?
Non-Price Determinants
More Non-Price Determinants
The Key to Understanding D & S
Changes in Quantity Demanded
An Increase in Demand
A Decrease in Demand
Normal and Inferior Goods
Substitutes and Complements
Demand Estimation
SUPPLY
More on Supply
Why is the supply curve upward sloping?
Non-Price Determinants of Supply
More Non-P Determinants of S
More Non-P Determinants of S
Changes in Supply
Increase in Supply
Decrease in Supply
Changes in Quantity Supplied
An Interesting Application
What Can We Do About Drugs?
Market equilibrium
Equilibrium and Changes in Demand
Equilibrium and Changes in Supply
Summary of Market Prices
Q = 26,000 - 500P - 250Pog + 200Ib - 5,000S
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