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Lecture 25.pdf
- 1. Lecture 25 The Economic History of the United States
- 2. Quiz 8 Rescheduled 11/21 to 12/5
- 4. Macro Micro
- 6. Demand
- 8. Price Quantity $2 25 $5 20 $7 15 $10 12 $12 10 $15 7 $18 5 $20 3 $25 1
- 9. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price Price Quantity $2 25 $5 20 $7 15 $10 12 $12 10 $15 7 $18 5 $20 3 $25 1
- 10. Value - Willing to Pay Price Consumer Surplus $20 $15 $5
- 11. Consumer Surplus Area above the price line and below the demand curve
- 12. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price Consumer Surplus ($15 x 15 ) ÷ 2 = $112.50 $10 x 15 = $150
- 13. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price Consumer Surplus ($20 x 20 ) ÷ 2 = $200 $5 x 20 = $100
- 14. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price ($5 x 5 ) ÷ 2 = $12.50 $20 x 5 = $100
- 15. Change in Price Change in Quantity Demanded
- 16. Shift in Demand Income Population Price of Substitutes Price of Complements Expectations Tastes
- 18. Supply
- 19. The Law of Supply As price increases the quantity supplied increases
- 20. Producer Surplus Area below the price line and above the supply curve
- 21. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price Producer Surplus ($9 x 15 ) ÷ 2 = $63
- 22. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price Producer Surplus ($14 x 23 ) ÷ 2 = $161
- 23. Shift in Supply Innovation Taxes and Subsidies Expectations Entry or Exit of Producers Changes in Costs
- 25. The Law of Demand As price increases the quantity demanded decreases
- 26. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price
- 27. Supply
- 28. Producer Surplus Area below the price line and above the supply curve
- 29. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price Producer Surplus ($9 x 15 ) ÷ 2 = $63
- 30. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price Producer Surplus ($14 x 23 ) ÷ 2 = $161
- 31. Shift in Supply Innovation Taxes and Subsidies Expectations Entry or Exit of Producers Changes in Costs
- 33. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price
- 35. $0 $5 $10 $15 $20 $25 0 5 10 15 20 25 Quantity Price
- 36. Complements goods or services that are used together
- 37. Complements
- 39. Substitutes goods or services that can be used for the same purpose
- 41. Normal Good Demand increases as income rises and decreases as income falls
- 42. Inferior Good Demand decreases as income rises and increases as income falls
- 44. Price Supply Demand Market Price Quantity Price Controls QD = Qs Qm Maximum Ceiling Controlled Price Qd Qs Shortage
- 45. Price Supply Demand Market Price Quantity Price Controls QD = Qs Qm Minimum Floor Controlled Price Qd Qs Surplus
- 46. Wage Supply Demand $12 Quantity Wage Controls 150 Minimum Floor Minimum Wage $20 100 200 Raise Fired Not Hired