ECON 1 Lecture Notes - Lecture 6: Economic Equilibrium, Demand Curve, Average Variable Cost
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Efficiency versus equity maximize profit or maximize trade competitive equilibrium is efficient may not be equitable but it special characteristics. Buy and sell one time one point in of our experiment unit only. Markets can buy any units discrete continuous on tutoring the amount for units a good. Lab of some goods and services time gasoline for others can buy as often as we supply is produced amount want not given produced depends on cost. Demand curve quantity per period buyers willing to buy for each possible price. Supply curve per period sellers sell for each possible quantity willing to price. Equilibrium price price at which quantity demanded supplied equals quantity. Revenue price x quantity competitive market take price as given market price. Revenue rises with quantity cost also rises with quantity. Cost short run is inputs inputs fixed cost of some building and equipment.
