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Econ. Nov 3

Published on Dec 19, 2015

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PRESENTATION OUTLINE

Market Equilibrium

Mr. Melkonian

Market equilibrium

price where no shortage or surplus occurs

if an item is too expensive

people aren't buying as much (surplus)
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If an item is cheap

people buy more, usually won't be enough (shortage)
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Cookies

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demand/supply curve

nom nom nom

prices below equilibrium

frustrated customers who can't buy a lot
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sometimes these customers offer more than stated price

markham bidding wars

prices above equilibrium

many unsold goods - sellers undercut (tutor)