Clicker Check-in Survey: Do you own an Ipod?

1
Clicker Check-in Survey Do you own an Ipod?

• Yes
• No

2
A demander with Buyer Value 50 buys an object
from a supplier with Seller Cost 20. The sum of
the buyers and the sellers profit is

• larger, the greater the price.
• the same at all prices between 20 and 50.
• smaller, the greater the price.
• None of the above.

3
Why is that?

• Buyers profitBV-Price
• Sellers Profit Price SC
• Buyers Profit Sellers profit
• (BV-Price)(Price-SC)BV-SC
• So sum of buyers and seller profit is BV-SC
  regardless of price.

4
And on to our main lecture

5
If more fish are caught on Day 2 than on Day 1,
then between Day 1 and Day 2, the supply curve

• Shifts to the right.
• Becomes flatter.
• Becomes steeper.
• Shifts to the left
• 5 Shifts vertically

6
Sunk costs are costs that do not change with the
number of units sold.

1. True
2. False

7
If the price of gasoline doubles, but the number
of fish caught stays the same, happens to the
equilibrium price of fish?

• It will go up, but not quite double.
• It will stay the same.
• It will exactly double.

8
And now back to our lecture