PPT-General Equilibrium: price taking

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 . 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 . A Simple Economy. Useful, but optional. Firm: Optimisation. Consumer Optimisatio. n. Prerequisites. July 2015. 1. Note: the detail in slides marked “ * ” can only be seen if you run the slideshow. 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. © 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 . 1. 2. What is a Market?. Market. is a mechanism through which buyers and sellers (individuals, firms, agents or dealers) of a good (or service) interact to determine price and quantity of a product. . 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. Interaction of Demand & 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. Chapter 4. Outline. Equilibrium and the Adjustment Process. A Free Market Maximizes Producer . Plus Consumer . Surplus (the Gains from . Trade. ). Does the Model Work? Evidence . from the . Laboratory. 4. Last chapter illustrated scarcity, using the PPF. Societies need a mechanism to allocate scarce resources.. Markets are the most popular mechanism that allocates scarce resources. . Most of the . 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. I. . A change in demand. II. A change in supply.  . I . only . B) II only . C. ) Both I and II . D. ) Neither I nor II. If other factors are held constant, a decrease in supply . causes. quantity . supplied to decrease. . . Scalars and vectors. . Types of forces. . Resultant of forces. . Equilibrium of particles. Scalar and Vectors. . Scalar - . a physical quantity that is completely described by a real number. The Microeconomics of International Trade. ECN230. Roberto J. Garcia. School of Economics and Business, NMBU. Session 4. General equilibrium trade analysis II. Heckscher-Ohlin-Samuelson (H-O-S) model.