CAS EC 101 Lecture Notes - Lecture 3: Ice Cream Cone, Frozen Yogurt, Aggregate Supply

• School: Boston University
• Department: Economics
• Course: CAS EC 101
• Professor: Saponara

Document Summary

Before moving to boston, i lived in a one-bedroom apartment in chapel hill, north. The apartment had 900 square feet, in-unit laundry, air conditioning, updated kitchen amenities, and a private porch. The apartment complex had a pool, tness center, and tennis courts. My rst apartment in boston was much smaller, and had neither laundry (the nearest laundromat was 2 blocks away) nor ac (opening the window worked, but then you had to listen to i-95 tra c). These are examples of the types of questions that can be answered using the model of supply and demand. More generally, we want to analyze how individual decisions whether to buy or sell a certain good combine to determine the price for that good and the total quantity bought/sold. Once the fundamentals of the model are understood, we can extend the analysis to evaluate policy decisions regarding taxes, price controls, and international trade.