ECON 162 Lecture Notes - Lecture 1: Organic Food, Price Controls, Moral Hazard

• School: Binghamton University
• Department: Economics
• Course: ECON 162
• Professor: Kenny Christianson

Document Summary

Supply curve- describes the behavior of producers in a market. Demand curve- describes the behavior of consumers in a market. Market- a collection of buyers and sellers where exchange takes place. Three characteristics: geographic space, time period, product space. Types of resource allocation mechanisms: government edict. Arbitrary criteria: lottery (random, first-come, first-served; queuing , markets. Equilibrium a situation that will tend to persist over time. Demand curve- a model that shows the quantity that consumers are willing and able to purchase at different prices, ceteris paribus. Determinants of demand: price of good x (px, prices of substitutes and complements (py, income (i, tastes and expectations (t, population (pop) Results from a change in py, i, t, pop. Supply curve- a model that shows the quantity that producers in a market are willing and able to sell at different prices, ceteris paribus.