PPT-Equilibrium price

Interaction of Demand amp Supply Demand is the willingness to buy a good or service and the ability to pay for it Supply is the desire and the ability to produce and sell Markets are the place where buyers and sellers come together. Module 19. Learning Objectives. The difference between short-run and long-run macroeconomic equilibrium.. The causes and effects of . demand shocks. and . supply shocks. How to determine if an economy is experiencing a . MICROECONOMICS. Principles and Analysis. . Frank Cowell . Almost essential . General Equilibrium: Basics. Prerequisites. July 2015. 1. Puzzles in competitive equilibrium analysis. We . have focused on competitive equilibrium . © Peter . Berck . 2012. Lecture Outline. Goods. People Demand Goods; . Shift in demand. Firms . Supply Goods; . Keep Supply and Demand Separate. Demand and Supply intersect at the equilibrium price and . OF CONSUMER . (INCOME, SUBSTITUTION AND PRICE . EFFECTS ). INCOME EFFECT . Income effect . is the effect on the quantity demanded of the commodity due to the change in the income of the consumer . while the prices of the other commodities remain . Rôle. of Prices. MICROECONOMICS. Principles and Analysis. . Frank Cowell. Almost essential . General equilibrium: Basics. Useful, but optional. General Equilibrium: Price Taking. Prerequisites. July 2015. Demand and . Supply - Week 2. This week we want to apply our tools of supply and demand to help us think logically about real world problems. . Remember the Basic Shifters of Demand. Remember the Basic Shifters of Supply. Fred and Elmer. No Price War. Price War. Players’ Strategies. Strategies: . . Elmer: Price war if Fred opens . . No Price war if Fred opens.. Fred: Open. . Don’t Open. Two Nash equilibrium. Christina Ammon. Overview. Will go through one question today as an example of what to . do + common mistakes. Will go through one more next week. Moodle Quiz 6. Common Mistakes/Tips. Expected to write half a page for each 5 point sub-question. Which of the following influences does NOT shift the supply curve?. an increase in consumer income. a decrease in the price firms expect to receive in the future. a rise in the wages paid workers. development of new technology. Fred and Elmer. No Price War. Price War. Players’ Strategies. Strategies: . . Elmer: Price war if Fred opens . . No Price war if Fred opens.. Fred: Open. . Don’t Open. Two Nash equilibrium. The Basic Decision-Making Units. A . firm. is an organization that transforms resources (inputs) into products (outputs). Firms are the primary producing units in a market economy.. An . entrepreneur. Readings:. Leach, Chapters 2 and 3. Competitive Equilibrium. Q: What kinds of social arrangements cause private (self) interests to become aligned with the public (collective) interest?.  . A: Adam Smith’s central thesis in the Wealth of Nations . Demand & Supply Together. Bringing Supply and Demand Together. How is the price of a good determined?. The market forces of supply AND demand work simultaneously to determine the price.. The law of supply and demand. “ECONOMICS . ”. By Alan J. Carper. Bob Jones University Press. 1998. Chapter . 4. : . “Supply and Prices”. Unit I: What Is Economics?. Objectives:. Should be able to.... Define supply, budget deficit & surplus.