[ECON 1281] - Final Exam Guide - Comprehensive Notes for the exam (84 pages long!)
29 Nov 2016
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Advanced demand issues in art, culture and entertainment (9/13, 9/16) Art, culture, and entertainment are more difficult to define and assess as goods and services than most other types of goods. Not buying steel or apples every single product is different. Art, songs, movie plots, films all different. Subjective preferences play a large role; partly due to differentiated products but also just opinion. As a consequence, markets for art, culture, and entertainment are more difficult to analyze using traditional demand functions, and we often use special terms in describing their demand. Factors that shift demand curves:-- q on x axis, price on y axis. Preferences plays a major role in art forms. Expectations plays a major role in art forms. Shifts supply curve: cost of production, prices of related good, tech (better tech, stuff is cheaper) Economists are very empirical (run experiments and observations) A normal demand function for a good or service might look like this:
