DEMAND

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DEMAND SUPPLY
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Demand

• (own) Price
• Ceteris Paribus Conditions

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Ceteris paribus Conditions

• Tastes (cant explain where they come from) Let
  other do this.
• Income
• Prices of Other Goods
• Expectations but this can be a trap be
  careful like tastes can be used to explain
  anything

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Changes in Demand

• Intuitive Forecasting
• Do this for your business

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Supply

• (own) Price
• Ceteris Paribus Conditions

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Ceteris Paribus Conditions

• Price of Factors
• The level of Technology

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Changes in Supply

• Intuitive Forecasting
• Do this for your business

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MARKETS

• Put Supply Demand Together
• Changes in Supply
• Changes in Demand
• Think institutive forecasting for your business

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A Theory of Price Formation

• Return to Equilibrium
• Changes
• Movements

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Government Intervention

• Price floors
• Price ceilings

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Issues

• Why a bountiful harvest is not good for
  farmers!!!
• Energy crises in California
• Free College
• Rent Control

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TERMINOLOGY

• Changes in quantity demanded
• Caused by changes in own price represented by a
  movement along a given demand curve
• Changes on Demand
• Caused by changes in ceteris paribus conditions
  represented by a shift in the entire demand
  curve

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What Happens if both Supply and Demand Change

• Airline Safety Regulations
• Raise Cost decrease supply
• Safer travel more demand
• ???????????????