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Some Econ Concepts
Definition of economics ,[object Object]
Fundamental economic problem ,[object Object],[object Object],[object Object]
Opportunity Cost ,[object Object],[object Object],[object Object]
Rational self-interest ,[object Object],[object Object]
Positive and normative analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Economic methodology ,[object Object],[object Object],[object Object],[object Object],[object Object]
Efficiency ,[object Object],[object Object]
Microeconomics
Microeconomics vs. macroeconomics ,[object Object],[object Object]
Algebra and graphical analysis ,[object Object]
Direct relationship
Inverse relationship
Linear relationships ,[object Object]
Demand and Supply
Markets ,[object Object],[object Object]
Demand ,[object Object],[object Object]
Demand schedule
Demand curve
Law of demand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Income ,[object Object],[object Object],[object Object]
Income and demand: normal goods ,[object Object]
Income and demand: inferior goods ,[object Object]
Price of Related Goods ,[object Object],[object Object]
Change in the price of a substitute good ,[object Object]
Change in the price of a complementary good ,[object Object]
Tastes ,[object Object]
Expectations ,[object Object],[object Object],[object Object],[object Object]
Number of Buyers  ,[object Object],[object Object]
Change in quantity demanded vs. change in demand Change in quantity demanded  Change in demand
Market demand curve ,[object Object]
Supply ,[object Object],[object Object]
Supply schedule
Demand curve
Law of supply ,[object Object]
Reason for law of supply ,[object Object],[object Object],[object Object]
Change in supply vs. change in quantity supplied Change in supply Change in quantity supplied
Individual firm and market supply curves ,[object Object]
Determinants of supply ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Price Received by Supplier ,[object Object],[object Object]
Price of resources (Input Price) ,[object Object],[object Object]
Technological improvements ,[object Object]
Expectations and supply ,[object Object],[object Object]
Increase in the Number of Sellers
Prices of other goods ,[object Object],[object Object],[object Object]
Equilibrium…the fun never stops
Market equilibrium
Price above equilibrium ,[object Object]
Price below equilibrium ,[object Object]
Consumer and Producer Surplus ,[object Object],[object Object]
Consumer/Producer Surplus Visualized
Consumer surplus ,[object Object],[object Object]
Example ,[object Object]
Benefits and cost of first unit ,[object Object],[object Object],[object Object]
Total benefit to consumer
Total cost to consumer
Consumer surplus
Demand rises
Demand falls
Supply rises
Supply falls
Price ceiling ,[object Object],[object Object]
Price ceiling (continued)
Price floor ,[object Object],[object Object]
Price floor (continued)
Elasticity
Elasticity ,[object Object],[object Object],Price elasticity of demand =
Price elasticity of demand ,[object Object],[object Object],[object Object],[object Object]
Perfectly elastic demand
Perfectly inelastic demand
Elasticity & slope ,[object Object],[object Object],[object Object],[object Object],[object Object]
Elasticity along a linear demand curve
Elasticity along a linear demand curve
Determinants of price elasticity ,[object Object],[object Object],[object Object],[object Object]
Price elasticity of supply
Perfectly inelastic supply
Perfectly elastic supply
Determinants of supply elasticity ,[object Object],[object Object],[object Object]
Elasticity and total revenue ,[object Object],[object Object],Price elasticity of demand =
Elasticity and TR (cont.) ,[object Object],[object Object],[object Object],[object Object],Price elasticity of demand =
Elasticity and TR (cont.) ,[object Object],[object Object],[object Object],[object Object],Price elasticity of demand =
… ...Let’s Stick to the Non-confusing Example
Everyone's Favorite…Taxes!!!!
Tax incidence ,[object Object],[object Object],[object Object]
Costs and production
Production possibilities curve ,[object Object],[object Object],[object Object]
Specialization and trade ,[object Object]
Specialization and trade ,[object Object],[object Object]
Absolute and comparative advantage ,[object Object],[object Object]
Example: U.S. and Japan ,[object Object]
Absolute advantage? ,[object Object]
Comparative advantage? ,[object Object]
Gains from trade ,[object Object],[object Object],[object Object]
Gains from trade (continued) ,[object Object],[object Object]
Free trade? ,[object Object]
Robinson and Crusoe? Really USAD……Really?
Profit Motive and Behavior of Firms ,[object Object],[object Object],[object Object]
Different Costs ,[object Object],[object Object]
Marginal Cost ,[object Object],[object Object]
How to find marginal cost ,[object Object],[object Object],[object Object]
Law of Diminishing Returns ,[object Object],[object Object]
Law of Diminishing Returns ,[object Object],[object Object]
Imperfect Markets
Monopolies ,[object Object],[object Object],[object Object],[object Object]
Why Monopolies Are Bad? ,[object Object]
Price discrimination ,[object Object],[object Object],[object Object]
Price discrimination (cont.) ,[object Object],[object Object]
Next up…Oligopolies ,[object Object],[object Object],[object Object]
Creative Destruction ,[object Object],[object Object]
Market failures ,[object Object]
Oh the Government ,[object Object],[object Object]

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