ECO 108 Lecture Notes - Lecture 33: Acoustic Guitar, Market Clearing, Agusta
Document Summary
Cost of me attending ur: not just my side, also from ur e. g. keeping lights on, or cost to student who was rejected. In eco, you are skilled if someone is willing to spend money on what you can do. Otherwise, you"re physically skilled and no one cares. A company pays for your ability to produce and determines how much you earn. e. g. other people want rizzo, hence why he gets 80k. Cost more to make more -> this is why supply curves slope up e. g. you are employing people, taking people from other industries, taking materials from others etc . How companies are making cheaper goes about economies of scale and will be explained another day. Supply (the set of all qs) --> law of supply. Our theory of supply explains a some ice cream. Our theory of demand explains a lot of people. But how do we get from some ice cream to a lot of people.
