Economics : Behavior of Buyers and Sellers & Product Pricing

Differentiate demand from quantity demanded and show how price and income determine willingness and ability to buy, i.e., the relation between price and quantity demanded.

Explore the law of demand, showing an inverse relation between price and quantity demanded, with examples and the downward-sloping demand curve derived from a demand schedule.

Aggregate two individuals' demand curves to construct the market demand curve and schedule, illustrating how price changes influence total quantity demanded while holding other factors constant.

Explore movements along the demand curve as price changes alter quantity demanded, with other factors held constant. An extension occurs when price falls, and a contraction occurs when price rises.

An increase in income shifts the demand curve right for normal goods and left for inferior goods, while price changes move along the curve; other factors cause shifts in demand.

Explore how price changes in substitutes and complements influence demand, and how expectations, preferences, and the number of buyers shift the demand curve.

Learn how the supply side differs from quantity supplied, how price shapes the quantity producers are willing and able to sell, and that the next lecture covers law of supply.

Explain the law of supply, showing a positive relation between price and quantity supplied, and illustrate supply schedules and supply curves, including market supply and firm entry and exit.

Observe movements along the supply curve when price changes; a rise from $2 to $4 increases quantity supplied from 20 to 40, moving from point a to point b.

Examine how factors beyond the own price shift the supply curve, including input prices, expectations, number of producers, technology, and taxes or subsidies, illustrated by gaming consoles.

Explore how supply and demand interact to determine the market equilibrium, with equilibrium price and quantity where consumers' willingness to buy equals producers' willingness to sell.

Explain how demand and supply determine the equilibrium price where quantity demanded equals quantity supplied, and describe how shortages below equilibrium and surpluses above equilibrium drive price adjustments.

Explore how demand and supply shifts affect market equilibrium in chewing gum. Bread price rise boosts demand, raising price and quantity; sugar costs reduce supply, raising price and reducing quantity.

Explore how simultaneous demand and supply shifts reshape market equilibrium, showing two possible outcomes with price rising in both and quantity depending on the relative shift.

Explore elasticity as a measure of how demand and supply respond to price, income, and related goods, including price elasticity of demand and price elasticity of supply.

Examine price elasticity of demand and its determinants, including substitutes, necessity versus luxury, income share, time period, and methods like midpoint method, and how these shape elastic or inelastic responses.

Learn to calculate price elasticity of demand with the percentage change method, using elasticity equals percent change in quantity demanded over percent change in price, reflecting the inverse relationship.

Explore how the percent change method yields inconsistent price elasticity between A and B, and apply the midpoint method to obtain a symmetric, average elasticity along the demand curve.

Explain why slope can mislead as a measure of responsiveness and how price elasticity of demand uses percent changes to provide a unit-free view of quantity demanded with price.

Apply the geometric method to estimate price elasticity of demand at points on a linear demand curve, using lower and upper segments.

Revisit geometric method with the metric method to show price elasticity of demand shifting from elastic at higher prices to inelastic at lower prices, illustrated by a burger example.

Examine how total revenue equals price times quantity and varies with price changes under elastic, inelastic, and unitary elastic demand, highlighting revenue versus profit implications.

Explore constant elasticity demand curves, including perfectly elastic and perfectly inelastic cases. Also examine unitary elastic demand on a dangler hyperbola, where total revenue remains constant.

Explore how the slope of the demand curve relates to price elasticity of demand, distinguishing elastic from inelastic curves and showing that flatter curves are more elastic.

Explore income elasticity of demand and how normal and inferior goods respond to income changes. Analyze cross-price elasticity to compare substitutes and complements and understand price effects on quantity demanded.

Explore the price elasticity of supply and its determinants. Understand how input availability, production costs, risk willingness, and the time horizon shape elasticity from short run to long run.

Apply the midpoint method to calculate price elasticity of supply from a numerical example: a 10% price drop yields a 20% drop in quantity supplied, elasticity 2, indicating elastic supply.

Explore three constant-elasticity supply scenarios: perfectly inelastic (vertical, zero elasticity), perfectly elastic (horizontal, infinite elasticity), and curves passing through the origin where elasticity equals one.

The lecture shows that price elasticity of supply varies with production capacity, being high when slack exists and low near full capacity, illustrating capacity constraints and investment needs.