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All the readings I need: Econ 1 reader, econ 1 experiments, comm 1 reader, comm 1 textbook, and stats textbook. I think that’s it.
Principles of Economics by Timothy Taylor
Chapter 4: Demand and Supply
demand is the relationship between price and quantity demanded. Not just the quantity itself.
supply is the relationship between price and quantity supplied.
law of demand is the relationship that a lower price leads to higher quantity demanded and higher price leads to lower quantity demanded.
law of supply is the relationship that lower price leads to lower quantity supplied, and higher price leads to higher quantity suppled.
demand curve shows the relationship between price and quantity on a graph.
supply curve shows the relationship between price and quantity on a graph.
equilibrium price is where the quantity demanded equals quantity supplied.
equilibrium quantity is where price demanded equals price supplied.
surplus occurs when price is higher than equilibrium price, less people want to spend that money, so there is a surplus in quantity supplied.
shortage occurs when price is lower than equilibrium price, so more people want to spend that money, so there is a shortage in quantity supplied.
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