ECON 208 Lecture : Lecture 1.pdf

• School: McGill University
• Department: Economics (Arts)
• Course: ECON 208
• Professor: Irakli Japaridze

Document Summary

In-class midterm in two weeks (1. 5 hours: multiple choice (cid:120) standard 3 hour final, multiple choice and maybe long answer depending on how we progress. Demand (cid:120) quantity demanded: total amount of a product consumers desire to purchase in some time period. Determination of a price (cid:120) market: any situation in which buyers/sellers negotiate the transaction of some goods/services (cid:120) markets may differ in the degree of competition among various buyers and sellers (cid:120) In a perfectly competitive market, buyer/sellers are price takers: in this case, one new buyer/seller is so insignificant that they alone cannot alter the price of a product. At an equilibrium price (point e), every buyer finds a seller and every seller finds a buyer therefore the market. 150: an increase in demand causes an increase in both the equilibrium price and equilibrium quantity, a decrease in demand causes a decrease in both the equilibrium price and equilibrium quantity.