[COMM 220] - Final Exam Guide - Comprehensive Notes fot the exam (38 pages long!)

• School: Concordia University
• Department: Commerce
• Course: COMM 220
• Professor: Somers Bertram

Document Summary

Chapter 2 the basics of supply and demand. Understand and predict how changing world economic conditions affect market price and production. Evaluate impact of government price controls, minimum wages, price supports and production incentives. Determine how taxes, subsidies, tariffs and import quotas affect consumers and producers. Supply-demand model combines supply curve and demand curve. Supply curve: relationship between the quantity of a good that producers are willing to sell and the price of the good. The higher the price, the more that firms are able and willing to produce and sell. Ex: higher price may enable current firms to expand production by hiring extra workers, by having existing workers work overtime or by increasing size of plants. Supply schedule: lists the total quantities of a particular commodity that sellers would be prepared to supply at different prices per period of time in a specific market, all other things being held constant. (2 7)