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Lecture 3

ECON 402 Lecture Notes - Lecture 3: Buffalo Wild Wings, Demand Curve, Economic Equilibrium


Department
Economics
Course Code
ECON 402
Professor
William Crowley
Lecture
3

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1.10 The two variables that if their prices would change would cause the quantity demanded of
UGG boots to change from 2016 to 2017, as indicated in the table are:
1) The price of sheep’s wool, which is the main
component of UGG boots, got higher
2) The EMU Company, who is the UGG main
competitor, started selling boots that are
cheaper and warmer than UGG boots.
1.11 The law of demand, which states that at higher
price consumers will demand a lower quantity of a
good, will cause the movement from point A to point
B
The two variables that if their values were to change
would cause a movement from point A to point C are:
1) A good advertisement company, with a famous
singer or actor staring in it
2) Lots of restaurants, that are serving chicken
wings, decided to increase the price on them
2.5 In my opinion, a decline in oil prices would not ever cause a reduction in the supply of oil.
As the textbook states, the term “change in supply refers to the shift of the supply curve,
because of the change in one of the variables other than the price of the product. However, in
our example the product changes its price, so no difference in change in supply had appeared.
2.6 The law of supply, which states that a higher price will induce producers to supply a higher
quantity to the market, will cause the movement from point A to point B.
The two variables that if their values were to
change would cause a movement from point A
to point C are:
1) Buffalo Wild Wings had created a more
effective way of producing traditional
chicken wings
2) The price on chili pepper, one of the
main components of the chicken wings
,had a decline in his price
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