COMMERCE 1AA3 Lecture Notes - Lecture 8: Hot Dog, Substitute Good

13 views2 pages
Published on 21 Mar 2016
School
McMaster University
Department
Commerce
Course
COMMERCE 1AA3
Professor




o


 
 !
"
 #$
$%&' ()*

o+
,
&-.#//*

$%0*!
o
1,
#
(-%2/#/

$%. 
o
+#
3
4
$%2  
#!

 !
o5
,
" *5
o
*+
 
!
$%
o 67!8
9:;
<4=$<4-=
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows half of the first page of the document.
Unlock all 2 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Types of supply: perfectly inelastic supply. Supplier will not change amount that they are supplier regardless of price. Examples: rare art; regardless of the price you can"t just make another priceless painting: inelastic supply. Requires hard to find resources, a lot of capital, and skilled labour. Doesn"t require: a lot of land, hard to find resources, and labour. Example: hot dog vendor: perfectly elastic supply. Examples: any good for which a decrease in selling price means a firm will not supply any amount. This would be the case if the price fell to a point where all suppliers would lose money if they produced goods: unit elastic supply. No goods out there that refer back to unit elastic supply: determinants of es. The key determinant of es is time. Supply is usually more elastic in the long run that in the short run. Example: the supply of roses is given by qs = p+30.

Get OneClass Grade+

Unlimited access to all notes and study guides.

YearlyMost Popular
75% OFF
$9.98/m
Monthly
$39.98/m
Single doc
$39.98

or

You will be charged $119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.