Lecture # 9
Why is Gasoline typically more expensive during the summer?
People tend to have more vocation
"stock variable" is a variable measurable at one particular time (wealth)
"flow variable" is a variable measured after a prolonged amount of time retros epecting
spending in the past "x" amount of time (income).
• Equilibrium price: the price for which Q^s = Q^d
• Equilibrium quantity: the quantity that corresponds to equilibrium price.
• If Qs > Qd, there is