Search for notes by fellow students, in your own course and all over the country.

Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.

My Basket

Buy These Notes

You have nothing in your shopping cart yet.

Title: Supply and Market Equilibrium
Description: Econ 1050 First Year University Course. Lecture Notes
Buy These NotesPreview

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

​ ​ ​ ​ ​ ​Anton
...

Law​ ​of​ ​supply​-​ ​Other​ ​thing​ ​remaining​ ​the​ ​same​ ​,​ ​the​ ​higher​ ​the​ ​price​ ​of​ ​the​ ​good,​ ​the​ ​greater​ ​is
the​ ​quantity​ ​supplied:​ ​and​ ​the​ ​lower​ ​the​ ​price,​ ​the​ ​smaller​ ​is​ ​quantity​ ​supplied
...
​ ​When​ ​all
other​ ​factors​ ​that​ ​influence​ ​producers​ ​planned​ ​sales​ ​remain​ ​the​ ​same
...

Supply​ ​schedule​ ​-Listed​ ​quantities​ ​supplied​ ​at​ ​each​ ​price​ ​when​ ​all​ ​other​ ​influences​ ​on
producer’s​ ​planned​ ​sales​ ​remain​ ​the​ ​same
...
Price​ ​of​ ​factors​ ​of​ ​production
...

​ ​ ​ ​ ​ ​ ​2
...

​ ​ ​ ​ ​ ​ ​3
...

​ ​ ​ ​ ​ ​ ​4
...

​ ​ ​ ​ ​ ​ ​5
...

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​*Improvement​ ​in​ ​technology​ ​would​ ​increase​ ​supply
...
​ ​ ​The​ ​state​ ​of​ ​nature
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
Market​ ​Equilibrium:
Equilibrium​ ​price​​ ​-Is​ ​the​ ​price​ ​at​ ​which​ ​the​ ​quantity​ ​demanded​ ​equals​ ​the​ ​quantity​ ​supplied
...


Price​ ​as​ ​a​ ​regulator
-High​ ​Price:​ ​Surplus​ ​of​ ​supply
-Low​ ​Price:​ ​Shortage​ ​of​ ​supply
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​Consumers​ ​compete​ ​with​ ​each​ ​other​ ​to​ ​push​ ​up​ ​the​ ​price
...

-Price​ ​will​ ​adjust​ ​when​ ​plans​ ​don’t​ ​match
...

-A​ ​surplus​ ​will​ ​force​ ​the​ ​price​ ​down
...

Example:
Demand​ ​for​ ​Ice​ ​Cream​ ​ ​ ​ ​ ​P=800-2Qd
Supply​ ​for​ ​Ice​ ​Cream​ ​ ​ ​ ​ ​ ​ ​ ​P=200+Qs
Qd=0​ ​ ​ ​ ​ ​ ​ ​P=800​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​2Qd/2​ ​=​ ​800/2
p=0​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​0=800-2Qd​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​Qn=​ ​400​ ​ ​Q5=0​ ​P=200
To​ ​solve​ ​for​ ​market​ ​equilibrium​ ​se​ ​demand​ ​equal​ ​to​ ​supply
Demand​ ​=​ ​Supply
800-2Qd=200+Qs
800-2Q*=200+Q*
800=200+Q*+2Q*
800=200+300Q*
800-200=3Q*
600/3=3Q*/3
200=Q*
To​ ​solve​ ​for​ ​equilibrium​ ​price,​ ​plug​ ​in

Title: Supply and Market Equilibrium
Description: Econ 1050 First Year University Course. Lecture Notes
Buy These NotesPreview