Economics 2150A/B Study Guide - Comprehensive Final Exam Guide - Economic Equilibrium, Tangent, Market Basket

• School: Western University
• Department: Economics
• Course: Economics 2150A/B
• Professor: Stirling

Document Summary

Only concerned with a single market at a time. Consider only a single good apples. 2 sets of agents; consumers (demand) & producers (supply) The quantity that consumers are willing to buy at any giving price level. Demand is downward sloping and consumers will buy more when price decreases. Factors that determine demand: preferences, relationship to other goods, price of other goods. The quantity that producers are willing to bring to the market at any given price. Factors that determine supply: price of factors of production inputs, price of the good, technology, number of suppliers in the market market structure. Tuesday, september 12, 2017: price of other goods. Also, one can consider the demand curve as shows, for any given quantity the maximum price consumers will pay. Supply curve is the minimum amount suppliers are willing to receive for any given quantity.