Economics 1021A/B Lecture Notes - List Of Muppets, Demand Curve, Margarine

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Arvin Dar

Document Summary

Introduction: demand, supply, determination of equilibrium, shifts in curves & changes in equilibrium, introduction. Quantity demanded and quantity supplied (not just the stock variable, but a flow quantity demanded per day/week, etc. ) refers to the desired or planned quantity given the price (you may want ferraris but you can"t afford it. Stock variables: the average student drinks 200 bottles of beer . The average student drinks 200 bottles a week/semester/year : demand. Qd=f(p, y, t, ps, pc: qd = quantity demanded. Quantity demanded depends on a number of factors: Ps = price of substitute(s: positive. As the price of margarine rises, people buy butter. Pc = price of complement(s): cheese and crackers, shoes & laces. As the price of shoes goes up, we buy less laces. We cannot graph all of these at once. Qd = f(p) | y held fixed at some level. | t held fixed at some level etc.