ECN 101 Lecture Notes - Lecture 4: Wayne Horvitz, Ice Cream, Collective Behavior

• School: Syracuse University
• Department: Economics
• Course: ECN 101
• Professor: E. Ashby

Document Summary

Inferior good normalgod : background. Be sure to do the following: read ch. Module in mylab econ: ch 4 online quiz in mylab econ, market: any arrangement that brings consumers and producers (firms) of a good together. market condition, market types vary by the level of competition. Competitive market: many consumers and producers of the good whatprice. Dm surplus (more details on competitive markets in ch. Ls winter the allocation is efficient enough or not: outcome no single consumer or producer can influence the price, model market condition that control the dis. Demand represents the collective behavior of consumers. Supply represents the collective behavior of producers. Taken together determines market outcome (price and quantity exchanged: adam smith & the invisible hand. Main idea: by acting in one"s own self-interest, resources go where they are valued most highly (i. e. under the conditions of perfect competition, allocative efficiency is achieved). lswin. ge or consumer.