Economics 2150A/B Chapter Notes - Chapter 1-5: Demand Curve, Root Beer, Yogurt

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

Document Summary

1. 4b) the manager is constrained by target production of q = 200. 1. 4c) exogenous variables are those variables whose values are taken as a given in an analysis. In other words, the variables whose values the manager is trying to optimally choose. Here, the endogenous variables are e and l. 1. 4d) statement of constrained optimization: Min pe e + pl l (e,l) However, the individual changes are pushing price in opposite directions (one up, one down). For instance, take p = 100. 250 each given value of p and fill in the first row of the table. For instance, take p = 200. Plugging p = 100 into the equation for qs gives. Qs = 50 + 200 = 250. Do this for each given value of p and fill in the second row of the table. The equilibrium is the price at which quantity supplies equals quantity demanded.