In class students first reviewed the downward sloping demand curve and demand schedule. Students must be able to differentiate a movement along the demand curve vs. a shift in demand.
Afterwards, students were introduced to the supply schedule and the upward sloping supply curve. Like the demand curve, students must differentiate between movements along the curve and a shift in supply. Shifts or changes in supply are as follows:
1. Changes in input prices
*2. Changes in related goods (substitutes/compliments in production)
3. Changes in technology
4. Changes in expectations
5. Changes in number of producers
**We will discuss #2. changes in related goods in greater detail next class.
The notes are attached and the homework is listed below.
Notes - Supply, Demand and Market Equilibrium
HW - Reread Module 7, complete Module 7 questions.
**Make-up for Quiz #1 by Monday 9/22
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