ECON 200 Lecture Notes - Lecture 5: The Hudsucker Proxy, Docent, Demand Curve

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25 Jan 2019
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In the dq commercial we watched if the price of the waffle cone piece goes up then the demand for ice cream. In general, if the price of the ice cream used in making a blizzard goes up what happens to the supply of blizzards. The hudsucker proxy: this clip shows how markets coordinate prices and eliminate excess supply (surpluses) and excess demand (shortages) Finding the equilibrium using equations: use the equations to solve: Qs = -30 +p (direct: set qd = qs. 90 - 2p = -30 + p or 120 = 3p or p = 40: plug p into qd or qs to find the equilibrium quantity. If p = 40: then qd = 90 - 2(40) = 10. If p = 40: then qs = -30 + 40 = 10: example, set qd2 = qs. = p: plug into qd2 or qs.

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