ECON 101 Lecture : chapter 4,5,6,7 All of these chapters discussed in the lectures are summarised into a very concise lecture which is easy to understand and go over.
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ECON 101 Full Course Notes
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At the maximum price pm (refer to notes), the quantity demanded (qd) exceeds the quantity supplied (qs) Result: excess demand (shortage) Rental market (refer to notes) Setting a maximum price legislation creates a shortage. Thus government will create low- income housing. Effects of a maximum price and the black market. Black market simply means that a commodity will be sold at an illegal price (since there is excess demand/shortage) Total revenue (when total output qs is with black market price pb) Tr = p x q = pb x qs (o pb b qs) Firms (producers: tr = pm x qm (o pm m qm) Black market: tr =( pb x qm)- (pm x qm); (o pb b qm) (o pm m qm) Sometimes to make units available, you have to bribe them. Applications of market demand and supply (chapter 5, 6 + 7) Minimum price legislation (refer to notes)