Econ 105 Lecture 5 Jan 21st
-Equilibrium = the price at which the supply and demand are equal
-Equilibrium price is where the supply curve and demand curve meet at the same point.
-Law of supply : supply slopes up
-Law of demand : Demand slopes down
- Law of supply and demand : the actual price and quantity will be the equilibrium
-Dynamics: ******see notebook for graph****** ( 1 )
This is a fancy phrase meaning "what happens when something changes?"
Consider the market for flowers in mid February.
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