Economics 1010a1 Lecture 1: MicroMacro Economics, year 1 - Skills&Principles- Summary
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One will not agree, until gain something off it. But real values, i. e. 5000 (nominal) = 2,500 (real), incl. taxes. Qdx = f (px, pr, pe, yc, tc, a, etc. ) Falling price, causes people to feel richer = people buy more. Other goods are consumed, prices fall, q increases. Rise in their prices make people buy more (rice and noodles in china, gasoline, parfum e. g. ) Increasing d, others buy the commodity as well. Decreasing d, others buy the commodity as well. Increasing d, cause increasing price (luxury cars, e. g. ) Qsx = f (px, pf, sf, t, w, g) Quantity supplied in relation to the price of the commodity (higher p, higher y; lower p, lower y) To the right: increasing d, increasing y (px constant) To the left: decreasing d, decreasing d (px constant) Elasticity (1) point elasticity (2) arc elasticity (3) calculus approach. Upward shift in d, shortage, increasing p (new market equilibrium)
