ECON BC 3041x Lecture Notes - Lecture 10: Real Wages, Wage Labour, Efficient-Market Hypothesis
13 Oct 2016
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(cid:862) ay"s law(cid:863) no supply without demand. Machinery: supply is elastic (no limit to amount of possible production, supply will respond to the demand, price is fixed. May cause supply to fluctuate: elastic supply, subject to natural conditions. Fine wine: supply price or production cost does not matter. Quantity is fixed: price depends solely on the demand curve, natural price has no effect on the market price. There is no adjustment in the market. Overall analysis: under specific conditions of production. Diamond: scarcity price (natural: like fine wines. Wage labor: wage price of labor. Real wage = purchasing power of money wage (>=
