ECON 2030 : Exam 1 Notes
Document Summary
Today"s menu: monday 30 january 2017: business, practice problems, first exam: one week from today, chapter 4: 3, 4, 6, 7, 10-19, 21. There are some markets where buyers alone determine the price: ex. Buying ice cream: 10 pints for 10 dollars, but it wasn"t on the grocery list. The price was lower, but you ended up buying more than you intended: not to be confused with quantity demanded (qd, cause and effect relationship, cause= change in price. You change the price of the good, people respond by changing the quantity: effect= changing the quantity demand, determinant of quantity demanded, price (p) of good (-, negative sign means they are moving in the opposite direction. Link with reservation price: the reservation price is the maximum price that you"re willing and able to pay as a buyer. What you think it"s worth: depends on who you ask.
