Principle of Microeconomics Reading Notes, Lecture notes of Microeconomics

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Reading Notes

Sunday, May 21, 2023 12:05 PM

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LON Chater 4 © SupHly oma olemand Héjen to the behourt on q hese omthey intenQck ustth Ome gmothen. © To nench highes? for of, Conmrpetiriom os emonteel crmust howe! C) Cyrwal s dfinect fpr sade tut one exactly the dame CA) Buyers amet sel2ens one so umenots that 6aly ome bya ON Belgen ham the /otlrence oven the one jruce. © Quom tty Demomsedl ' Orme um of Geval that buyers one wi Grol ole -to Jonchase. > Govets Freee. offecks it. * Aamo com aml? Frise T Demaamot 4 © Demamal Scheclute.’ table that shows elation shth betwee juce {a Brot amal Yom tity demamolad., © Quomtity supplied : arnoumt the reteus ME Wittig anct ane Abze “to ke02, > fraice sfects ot © Aw of Sufpiry : Qpomtity sup picect f Grools prucce P O Probe Suh iy : OM Setenns. * Some % { © Shuts im supp ty Come: © Laput frice i bere | Jowoluck ure % frcoluce the qooot. 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CoompLonumnt Ga omel Ikolime, @ Tastes CW Exhuctotioms ? eefectadioms fr © Namben ¥ buy ens futoe ° Equilebrucam 5 Te hoi int at which Suphty aol drmanal Cuwe Imtenteck, That ty Coput becom price ty) ena et Ubretanr Yan tity cz) 9 Sunpta sz Chess ayy g ° Shea tege: bess geod y face * Quantity dnamab —3S emove memt along oot shi. 3 futey Quamtity demand 7 the come fy Hort TdJusts te bring the quantity S4pticol ancl quantity Gomameled of thar gbed into lalomce. DDR: IDO eS bhat In}luemces hetce Blastig d Chopiter 5 © £ fasticsty? measune how rauch buyers cro} SeQsens neshomol to changes mm emar RUE Comaitioms - x tothe havgls im pee: His imeloutic if the Guoudttty oLemamdeol meShomas omby sQgletly ty dupes im puce. Goon using the fretce Hastcity 4 © Demcaol Y gomols is Said 7 be elastic ifthe quomdity olemanded respomol Substowt bally Oemasror. 6 Oxftmition 4K he Monet Aamamol, ° Time Horizon The Miol hoimt Methoos © Rimt B- frit #156 © Alunitaritity ¥ me Substrtudes © Necessities vasus Juxumes o Nonnourn the category mone elastic Der cum ; im 4} Rnroemt elastety Foca charge ion Yea i) © (a, 4) (Ra, A) of temamol Fe > (@-@) / Lex a)/23 Rreemt chage ion hurce Is ‘Te Vaniety of Poman oh Gave oe Fharen tre demand Cunve sem piel wf jos 4 a Qieern be 2 A patie not of oumand. be — © The steefun the smaster Ot Demanok Eposticities © Tromne Ekastehy of Damar ol oTncmme Demandl= 7 im salon Cea) / Dh R 3/25 Tat Ronone mol the Bute Elosticty of Damamol © Fotat Revenue = (Rice. % Quanity © Lf clernamal is imefastic - them imneaie dn price, Comte om immense im-tetak Mevenue. © Gemmal Rules © Demamd Inelastic * amorre. im . price amol etal Henemne the Some lanecctiom (fetce ? Revenue?) * Demamal Elaste * ruse anol “tat emove jm Pposite Aittectlom Cfita P Rennes) © Demand UmitEfestre: Tatal meee pumains ComsFomnt , Tre Cuass- fiutze Eheorictty — % chumge son { Demaral inconme The fete Blorrrcitey of S}ply aol Hs Detennmumaks © Quantity danamd 4 Orne Qécol teshanals 4s He charge im ruce of amuer qoor!. © fice Ebasticity f Supply: . quantity ed eshomols 7 changes m aneasmne 5 how © Creass Tice EOD = 7- change gaan ne. Jruce. ee Change ion Nulee of Sty 1 ona Last ore He Jane tw GA two Chapten € fue Ging : a Lego2 emox om pre pice ok utich a goool Gm be sofol. frice Floors a hegal enim abr pe price ot ehich @ gee Gm be Sooo, Plows fusce Foor Bigest mandek oy the equilebrum Puce is Wbove the floor, the Reon it rot himoliss. 5 Ff tre enpibibrutam rice it below are polos, tem He fon it binolt Flory Taxes om Steers, Atfect Moun et ott comes” Buyers Conpurtinp the [Rice EOS 9 Fiatce BOS = 7. chamye im Quem Sofflaedd *% Change im price - ° You tum also use the omiolpolnt Imedhool, ON ee eee ee Hows futce Cethicg Alfect Monket ° ¢ Z{ the freee Ahat hotamees the SYfty drol olemanot & below ceihiog them The price cellixy ismot dimating oxy price that dolamce the suYbleg anol alum an of it Above ceihing, Hem-Pe fice is bimouig SW 3 ee SUV \ > Fic Cethins Evoduating fice Gor-tnass Two Ways Pe kech the Arice from sceaching Sot | ebrduwn ° tax Inciolemce ! How the bunotamel Rx kk distrubuleal © we cectde uhethen ows offeets He I cowe om the olemamad wie S aye oleetote eshich wor the carve shifts © Uwe exomime how -the ahipt offects the Cqttboriurn price amol pamtity, Chater 7 © Buyers emaciomam pice 5 his wriliag mess te pay. © Gesumer Sonplts He ammount buyen > writings th WY minus the rmonmt buyers Acfuatby hays yp © Gmsurren Susp ts a Jeol mega une f Ceomomic. well ber'oPp YW, Darlagyemertins cw to gattrfy en lhet (1sv 76) + CBr-7°) + C Using, Dermnol Gave To Meas uns Jlowa houm Ke Coms umen Supls Poives Gmswmse © fook at We grok anc cabeulede Sunplus ? He aif fuer eo cetweem the dnc ts . . The PAENEASS IM Comg ume ‘s. bunpbus eetitteg buy-eas © The oney bebow-the cbmanol 1S the eoluchion iy the Gwure amol above the prive Are on Prey poy: MANES FhR Comp amr Carplus in the amarfeek . Comsumer value = Acmoumt Pocsucen. oui bus Sunlbus - To — hagel Buyens by © Tre armoumt a sealer { hoil coumus Ms Cast gy Jrodhuctto Frrookuscen = Armowwt Cost: ( recess — by to Wes Selden Toray nfs = Value +, buyers — (ost to selous Cai- i395) + Cigo-t3s) » ( es-135) Caro~7s) + (1g0-75) + Ci6s- 275) * Ct0S- 275) 40-70) (70-19) + (70-20) + (70-sd) + (70-707 (7s (t0$ “IS) + CioS-45) + Cos - [otal Revenue * * Cost an Prerclack Cuo- 69) + (Two-s) t CuO ~90) + C1r0- 410) + (10-90) Css - 18) + C aS- WS) + (23S Los) -is) + C as-4s) t Cis- $02 = 10S 60) + (16S ~75) = 26 a . _ c° 10538 6 fe it Totap Kevenue Otowge One pwr 30 to MonGéoap Revenue = Tut ol. Cost g ; 4s Nos . . C S as Marana Cosh = Dith between or s 7 es v L ‘ 1ep>8? 7 135 > 3s fro Moxinmiceol = See gem tangles