Changes

{{Economics_Lectures}}

{{Economics_Lectures}}

<add: Lorenz curve - an obscure topic on CLEP worth one question>

 

<add: Lorenz curve - a topic on CLEP>

<must include:  production possibilities (nearly 5% of CLEP), comparative advantage (3% of CLEP)>

Review:

Review:

discuss economics of bus project?

discuss economics of bus project?

==Inputs==

==Review: Inputs==

Until now, when we discussed what a company does, we have usually talked about its output.  How many goods will it sell at what price?  The price elasticity of its demand, for example, looks at how demand for its output changes based on a change in its price.

Until now, when we discussed what a company does, we have usually talked about its output.  How many goods will it sell at what price?  The price elasticity of its demand, for example, looks at how demand for its output changes based on a change in its price.

In general, the demand for inputs by firms is called the “derived demand for inputs,” because it is derived from the consumer demand for the products the company sells.  You want to buy gas from a gas station, and your demand in turns creates a demand by the station for its inputs: the gas and labor.

In general, the demand for inputs by firms is called the “derived demand for inputs,” because it is derived from the consumer demand for the products the company sells.  You want to buy gas from a gas station, and your demand in turns creates a demand by the station for its inputs: the gas and labor.

==Monopsony==

==Review: Monopsony==

A monopsony means only one buyer.  A buyer holds a monopoly on purchases.

A monopsony means only one buyer.  A buyer holds a monopoly on purchases.