ECO101H1 Lecture 9: Topic 5 Consumers, Producers and the Efficiency of the Markets
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ECO101H1 Full Course Notes
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Eco100y1 lecture 9 topic 5: consumers, producers and the efficiency of the. Note: test: friday november 6 12:30 2:30. Allocation of resources how much produced, which producers produce it, which consumers consume it. Economic well-being is affected by the allocation of resources. Willingness to pay (wtp) (relates back to what we learned in previous lessons about demand), it"s the maximum amount buyers will pay for a good, it measures how much the buyer values that good. Ex. ipods: wtp of consumers anthony: , chad: , flea: , john: . If an ipod costs , who will buy it? (anthony and. From this we can derive the demand schedule: The situation changes at above the willingness to pay. Depending on price, we can see the number of consumers change. From this, we can draw the demand curve: draw axes: q on horizontal axis, p on vertical axis, demand has a downward slope.
