ECON 1P91 Lecture Notes - Opportunity Cost, Kraft Dinner, Ceteris Paribus

• School: Brock University
• Department: Economics
• Course: ECON 1P91
• Professor: Professor Cottrel

Document Summary

Demand & supply schedules, curves & graphs. Changes in quantity demanded and quantity supplied. As q^(up), marginal bene t of extra unit falls, p(down) Ceteris paribus [all other things being equal] P = -2q^d + 47 [ inverse demand ] (slope)(intercept) Ceteris paribus, the higher the price of a good, the smaller is the quantity demanded. Demand increases - entire curve shifts rightward. Demand decreases - entire curve shifts leftward. Determinants of demand: prices of related goods. Complements - goods used in conjunction with one another. Demand curve shifts leftward: expected future prices: Double cohort - more students nishing high school at the same time, greater demand for university places. Horizontal summation of the individual demand curves. Costly or less pro table manufacturing become pro table. Willing to supply more at higher prices. Short run: pro table to employ additional labour to increase production. Long run: pro table for new producers to enter market and existing producers to expand.