ECON 208 Lecture Notes - Ceteris Paribus, Margarine, Economic Equilibrium

• School: McGill University
• Department: Economics (Arts)
• Course: ECON 208
• Professor: Wendy Dickinson

Document Summary

Question 1: changes in equilibrium (demand & supply) In each case, also identify what ceteris paribus condition(s) change. a. An advertising campaign convinces consumers that eating butter increases life expectancy and removes facial wrinkles. At the same time as (a), there is an outbreak of a serious cattle disease. At the same time as (a), the price of bread and rolls falls. At the same time as (d), the wholesale price of vegetable oil falls. (note: vegetable oil is used to produce margarine) b. c. d. Hint to class: practice first with study guide exercise 3 on pp. Also try study guide exercise 4 on p. 49. Do study guide extension exercises e1 & e2 on pages 52-54. The answers to this question are in the study guide. Your teaching assistants will go thought the answers with you to make sure you understand how to derive and draw the results. The question before conferences and before reading the study guide.