‘encom coc wit tenn ar oth enon canned wh {fedora also pt goal seas ond ksores the nods oases (nicl rns Markets ‘it a be dine san isan wich permis lmreton beter tyes sales ea ote {Seed a mec that Steines hich gonad ‘wre lcd Svar xt and rc mars Nr ord nd eis ae bong extooeFocatsch [con ae tod car mars The hos mits resol ae mes Test ait hbo Demand: the behaviour of consumers The demi fra god nnn the beh of baes | {ada she eons between vals posible pees Ste conespndg uses tt crue at wing dale pss pw epg eas abs Cts ares ears that cer ar efeing anand eaned cosa Thsrlatotp been pcp wt and uty ‘eran per pte ve ste). ean ‘ham pcs nase ay doranded wt derese ‘Sonne lel ad ale bey ls pr pd Telavese wats ean pce and quan demand Isreal thaw fem The lw demon states "hae pce of god res ten any demanded per od wl al cee ps ‘Neen ve shows ti re atop betwen he pce Perum fs pnd nd he ety ofthe apd ended i ep ms onl uy ‘oda oper ese on rel ‘Neem ney ta nal enue oo the ‘ate hema ead oe nt ann ew he quae mane by eh eal Soi ‘ru os fad Ras, an tr 200 oy ‘ing nfo ye i pw ne ss ‘lng rates bay se spr ws, te he ice (3200 thet anand 2 ute pra Foreman fig V1 ite pce per Phen onsen wing ad bn yO ns pe peo, ‘neste ace eased oF aru tn conse il ling oy 2 nt pert, ates tae ‘extn he ign change mea ean ‘onl maa Telnt of eure a pratima prc ‘ss etre te mare pe fn pat Chg 2 tert hee ein ches ait ers “stances ing nw sf nd Deeg pecan ew alco ef a eK ‘Se analse how mas facion we neo xa the Detar oeomumen ss a pace LNOILDAS rea Pree Ph we 1 Aa tt ad Goals of typical consumers insane ity the sfactin dred om ansaning 1 goad er abun of goes. ypeal arses wi testi the sy hs means thay wa oc band gos wncn mainaes thi sarin and he hy can aloe he cne and he es they fce te mre TDematan et | re pect noes et at oe ds aenetray ema ey spe acne al ‘bahar eo ‘Heros wac | mpc iron oC wr een sd yb lo MidOther factors affecting demand (‘shift factors) Change ncn ince yale deat ‘ample come cress thr demard mos. fends ge snr the demarcate ‘onced to shitthe gke Th theca ‘noma ges for some gat peal meu gods an ican scam wl eda 2 oman dean nd ft (emu cine tht Ta te cae ot ods These ied my hohave ral ued in on sey It aaa an rir goed ante for eanle.3 amy wha gene owincane population ease ie incame ay ead tan resent mond ee ‘has in atte curt whee people hae igh ners, 1c ince la may ad doce ‘he danand ered ere Changes in te ie of chr tad god wt ne an Impacto ean Fs ts oer Cange ne ‘teamplenents Wo gods creed copter heya cin oeuned igh Fos eapl mry peop cota ga a conplens ace Dey i _ i Sica } _— ‘ite ae 0 uty dma pi 8) eae ee ia aie: ‘ik twit ga we pec hati en of ‘feces te don a yd. More ge gos Ye rd 9 ‘omplenrs hn one h ro 908 nil Teac ces ne cma good X Dear or went ‘Su soune are icp 0 ai dome pp) Fes Lia ee noe cam “Thee may ab be hangs a pe of stn THe ats coro ase by ae cangtioe Sump an ones yl by ono he te 3 the gpd seme need ew amps all ‘eae rep Caan as a per cee the pc af pe Cl tn ected sh tn do or Gai one oe eh antares {ed wil ade aniecesin he ena Dean eka beig i rm i ‘etme ae z vamos gw LT sian nmin aa anon er geentero Clete © arty omnis pe eee 14h i int pc cath hn aaa and in his ay tke Sorel ssn at sora hen ‘rd be speranis ef aps curey Dora ‘idan ni clas sul per Wat yeu ees ‘pero mand ei ome a ts? 1 hanes inases afc demand. The mos dente peo ra od te move il aman ses ‘end y aves by ston by eigother ‘rsa by cnet hea ee Changes te sn of be mathe unr fra) silt once foes of safe noes ord eves pou wl tee on anv ws : 1 Mictoecaniis 1+ Charges nth age dont pn te te ten ol aera Acar ares an pe pss wo hag ei wae nae ‘ete tnah tend etn hv gu oe eto of changeit pas er cae wl ha anf: for eae peosiespc Eth pee gd we he sete ty by mae ‘Fit be pias ou iin caret Send ‘inet eg Shifts of demand versus movements along a ‘demand curve ‘May sur: nale mises oth ee yd tet ithe habit disning een mand a ty ens Denard canes anon gan he era ‘ine 2) whe Seeman tran he te (2d dares For eampe ngewe (Eennt and he donad cre tenga ee ‘uae conan changes wn he ne he god ‘harps and eft ina vent gt ean For ‘samp te res of gina ti uty demoed ‘tates Dear ands ota psn art ‘foc Teeny momma lenge ere ine 1 pen pot ang 0) ay in arn ing oad ans FP jo do Fone Phd pe abn ean rsa es) Supply: the behaviour of producers Tesipiy ofa gpos mmein te bhniow of prac (or fer} na nd ste lator betes as pase fated ovens hat a ling > or pt pte, cepts Crs ys mea ts. ‘she fcts afcting py sumed costar. ‘Wereltemship ete prt and ey sped = peg ae (te) eaing tthe ps ‘oc wi ewig t fer pep Theprte lato pe pera gathy al pe ped ft era a ‘Spi Tew sip sas at Fe pce 9 ct ‘pons the qu sled fred epece inoese. ‘spy cine hth nt tei bt th pce pe lait god are th quan upledpr peod. y ‘a sping Pep unt eased one vel 2s ‘aunty sled p pos one trun ‘spc my lr a ini fa othe maa ‘hematt py cn the hoa aman ene ‘spp ces an inal fir hs eae a at eh en eager sp by exch em 52 at cris of 100 cea fms and each wing > fe 00 ans prt ps of 5.00 ee mara, Sip wlbe 200 upto pr a $5.00 pr nt. umn po) ere Apa tata cine1 Micbéohics Fou 115, fe pce ten rofices wae wing tof Ol ants ps prs hess te pee nce 2 per ithe peas wil el ofe 2 onts eng at abe Berase ota pe, ev ot mag opi: aig tre ae toes pos na ree Tero sund | bose ome ar unt Tabet pete noe Sos pr de ies ego Sorte ose yaa ie et ee Other factors affecting supply ‘hit factors) 1 Change in theca of casa dco als input pcs ima (or wal he wages ai labours the ce oe nate see Peco the goodie ton, steps Sol epece to decease othe spy ce ‘gcd ost tet Aah pe, a be eng ers, lb wing rach it Seshighr acta oe Fig 116 tte fect nine ch wages Da Aue ta egal pay are Sn te [Ethan se aya, ele an nase nwo Fi es rer wing ft unpre pice wags pad “hon, 3 of tensed ent of uso ims wb wing fet ony 2 sper peda pc The cae lr al pcos eas stg he [cose nthe shtand i nga Sms no ig ers ppl pre pe ui eo on ose ‘ges ferme, fe il ing te 0 nis any ae ier pe PT sane Pals al Uso ‘ly deems sing at 52, ty pra (9) har 118 et gpl cn pa hanes to tel fe spy np cog ‘Soe eto lero ute ond ate sae Bren eresng say an ing esi cae the $n impo wdelogy oes th ct of peng ‘seh oma ot th a Charges in pci af sup. Pct ened es ep eu nt abou adetty sul at per wer fo srl ese he Ibtour fe bcos more eporeca, et tied n/a nesta ten a racy wl nese. inour pogo nzeasst, cts prs, rs ‘i eg ter mee nt each pce ncerng ‘Spy and sing soy cave te rat An Ince our edu gis oma rrodrton oe Charges goenmert ply spond as Satin afl the stl peng a te uo pod Andes airs mrt gore fe pruritic ment fis bythe overnite cut Pouca ecto nese psucion css and Feats dre spl on aah euro eae tothe le whress sib wl deception certcena ladon mse in spy anda ao Son ce eit Poin ae |e wags pas comes pan Masonite | oa crosses sy Serersan | naman shang pee Ee ‘ronseay | Fadi dipoes pain oe Cougs [dese nt unos, ii et ne 0 Dee arse ani | adc ec Secon ‘hore |e ome re ‘Sen siege mete De ‘elandwcee)| Kiopowse | pact as i an "isiad | pil oman, es tanh nt ch). Tae [Fee nem ne Strsee | hinge gp ane wos (cave change ne po apo a ty ap il fe an fiat on sp Thabo oi Snesapl fs rm esis toss ay peng ‘a be pce maton noes ne ma fem {nih nate nou te quar sie oF ‘tn, bet he ano he apy a wo Incas sup ee wl othe PO -Acsange inthe ie ond in compte wil fave an ec Ths abo best nce heh ‘ange eu fame wh ed ame es ‘topos loners an ages he peso anges Inoue than foil hive toe incnn te my ado ange i ef Temas decease sing pyar te s+ Changin te in ofthat he abe es a up Amore Sn a mar sa, ‘Sop ed ince Saige Sapo caneo Sen Equilibrium Price and output determination in a competitive market ‘Thee stich ag eld ina compte as ‘al be amin yb inwaton bet snes and Pouas chews certo a 9 arse ee te nes ge (ay ld ‘tid recur enc) en hcl don. ‘atsome pc the aces evan (Fars pe td ec ay ll the pe Wl od 1 tlicoecanoiies "Canoes in expats fea sua Fe eae te ‘Sion the pri be ger nts ay au spo get dees rom sg zy ‘oe et Chango acne stants ‘St wate odor at sa ‘sa Fos nbn ast rage ‘Bent sony alee a a wes, aces it ad siting ts sap cne te Aa ee eit co a aya Be so. Shifts of supply versus movemen's along a supply curve ‘May sce al ine otis ease ty oot ‘pete ao dsangusig betwen 2d ‘ney spies Suprema the ‘Sony toe shots) hen ny emia hr ne pce ‘he go change ats case of and For amply rio =a mtr i ange ‘oy arth spy cae eg oot {lay suppl cane went rte gant anges rs amare along he Sopa Fr ea, ifthe pin of gos she sey supe at Ince Sup ats hia epee wil tte ‘oan Thee ont 3 nowemertslng apy ce onmetaeg| 1 pa oh ee env cov | orgs a0) rings hg ‘rove Bh he) tension | (tom does eas togvcie | ores ‘oman Pa eet, Ferry oan ass elorpoasn ‘Seat planet fe Sb 5 Teale ht il ben eden let peo age i hele ae up nore arin he rotten it anny dere! pe ped at hte ul uty spied Th pce te ‘sro pce ate anspor uty = re ‘ui au "Api san ql pce quant demands sl gun sup, other xs mand neces SpyWe say hat th mat ‘eas o tat the mae, Sinem ery ‘uy we 17 ttn ein inact Changes in equilibrium CChanges in demand conditions afar afin demand hinges hn dosed Inemi of dees and a cage dan ve Sito iho thee Aw eqs il et 5 ih ogaal elu ee ees denan oces Sippy wi row as Thr tees erandineniek Theda cane shits eg { setheongal aqme ae wil be ns ant peat. ‘= Asuniog ypc dead an spy aes. igh ‘ils ead a gest quar ec gr 118 ett women ad nt frig gue 17 wo an selling cosions. 1 Cou beth cquirvm ic? ‘crs win is pti hl fis ‘eevlng ate ui pe eed Carty ped pe i ‘Sra oan quay dora Poses aon (alt= runt ppt cs ee pes he rofl soca supose ihre eet attoe tar roan anu pe ‘22 cour ar wing ty QL ut ped ble fis weg fer Os is epee. Osa mand ps ev ete an cy oped Tae ‘cs cena el O02 = 0052 = JV nts epi (thc wt ese pes arto Se xe (emanates rey rt mst pice eae, it {aloes tt pot an exam pce ‘ust end pt po aul oust spp ny at peat ei it as ema ors ‘Spy ste mate ea Pix OP tte the Spitram pee ts ford se tnt a te ‘mand nd th poy cones In gue 118 quia sna apc an quay (cond nouns fom Ita bate athe egal ‘Spl pe hr il bes can pt ‘Saunt domanded (eee way sped (2). fe demandin the mot om ese on he ce ince tl ew eqns acd 3 Pd C2 Demand eons “hse ae tel oman deceaes. f+ Tredenand cine sia ‘= Ath orginal equim pict wi be mcs sph 1 sess ng os thea b tener rhe pick oaks 1 Asuning pal dennd ad upp canes, ort ‘Slam ee a smal aneta uty Sloped vi ewe 118 Sts tem nt en nt eonInga 119, oqo ay at pe P adqaty Ur dena fo 2 then thoi ‘eur pce he wl eas sap cul Rs {arsed (eco quay demanded (0) as Str tw mat eae psu of te re odes Wola ner elvan Seabed a Pan 2 if far alctg sp canes ten sy il roma ease on ena aan sippy cane wl oe fahterto ete} Aw ecutrim wih st the el iran ter ces demané rc pl Sop ness ‘hove cs fy icas, Tres ane sis toe ht 1 Athen equlbium ic the ibe ces spy 1 secs uy th wil ater ne par arre suming spc mand nd spy cas owe teal pce se gear quatity Bees ei gee Lost fanny ornate ‘ng 110, aio ini at pe Fl atiy (supply ceases om 2th, ate gal Scot pce lhe wil be ec peal Fas ‘ny supe (0) nam pny ema (0) Ess Sonn he mrt cats pester th pce dense ‘nea new egaom ete 2 ond ‘Supt docnses ‘heb te fos pty doce 2 Thesaplyane sits tee. 1 Arte ongnaleqateum pe here wl be cs = Aces dad thr wb ated the 1 suming typical and ad ply es» Whee sulci pe ade me qurys epee Fee LL eels ene cote ‘Fe 111, lsu’ pie P and quay (1 py ces fn 1 2 thecal alta pce Pt wile ered eg a Ras ‘emt demas! (0) eas quan ple (7) Beas ‘ena in thematic pes nee cea ‘ra ew agonist 2 C2 oe “aceon at some gp nets esi guy eva ‘omens oes ep gut ut oth domand a sep caege "ach demand an soppy condos in mrt cana. ‘Seo ot utr ion of theo onc ole fis forthe of on apt prot elton lion quot il neonates eu row ‘Shor cagrmmatey ara (Ho) — By how much demand and spp charged. eal oth aman ad spouse ard haces soe a yo tno ors tnt he qi quay be at ae acon quran pis isuneran{1 iicioecnomies ‘The role of the price mechanism “The signalling and incentive role of relative price changes -Asume at frp good conan an sup ‘onions auc the lum pe P and oe quo qurtiy OTs determine sted in Fie 1112 nts othe good ped, th oe Scots sures acted 0 oecbon ese no st fences sce change and st fr ‘amo demand rth sod em ayer aay. tetra decease conan) Now 0 nts a Gens etniy espe yao il mare of i ono be peda tds tol sare cuees aloe a edenploedia is potion Wit mecanins wl anpen te guauene vrthe hage fours sac ibe sated? vei gr L2 sie in ce Teena rome oosscanens nt “The aro int ft nna om wil ‘Montel edo cess end ond ec he {Beth pote and cosunae sd exch gap wl ct over cote nfomatonthat nar he ond ‘rod andi ab re nee ect ‘Patfematon an th mwa ond pte Inge 11.12, qc spp incase lrg he py {nes ps nase fe PsP ea tat be an ters ef sp fom piso pm Ath sae ie, Sone cannes wb py ot ofthe rat eaten beckon ber cases se casein esas 2 eons qn dene don ee demand ‘ne 0 Thon 3 cneetn fe fo pat 82 pout Aeon er xa daar ext pe wt fennel pce P2 wad Pie 2 ‘ileum gee wher mw us ef gpd (2 unis) ae ‘ocean Scere no sod Fledcd impe tat mae sce sues a chal Ino is pdton ‘The ros aig a mae a gpd bing peas 0 Ino eseuras bang charlene fs poten has owe towtwibou be gman ay er eye, Friars ammas gin ein sites ‘ening gee ch ‘nists hand gues thi ears ew ee hat ‘cutee tet ho nt spt en ‘rs abo eae a sass ess on se wy ‘ice songs fe do ale ‘The rationing function of free market prices Wem ae ht ris ve sgaig a are le Iam com Te a awe ating unten attr’ pcs il rp wie rd. Pesinane ar gan eden ree Sal uo cr nse mac wm Bone Ta ea a 1s eos aga acon oa neo BT So ce wt ar aan sms vor von ee Thine atte rama esowpr nas mp ‘ecg tn #Sonoson wt nn Wo ok) ‘i dhs ne uy dns nd be one ee‘consumer surplus “ona wg wy $10 fo 3 oh nk he (Bact coud be atte pce ny 7 cans Yu wl ny 7 cts ss wh mae oyu tan Shee youve pa) Wessy hyo ged consumer ‘Spf 2 cs fox De sate e pune sume iat ‘rd unto 90 eats too. Yo eal a by as Sendant a's oh me 0 ou thn test pre Jour fg Te comune pus you ged tom he rend 5 ans Te csume sup re coszning ‘Sch entleterfo oil 4 crs Yu ew wig eet mes $150 hwo unis as mach sy ee era) aye pe ay S50. ‘Mego we dee asumer ups asthe ence Doe ou) connor rng a ae mest {Sy rsann aout god aa what ey 2c.) ing eel cary th camer on dag is cesar rd to eal at 9 nan ‘ne and 2 py cin) on ee owe 8 ca Foreadin demand dyn the vol sare he ‘Seis: how macht specu wath fs, tacoma: Une Qin pe 11 ort Plas (crete it canunets shy wold wil Pola mos by ot cet mn ees fen aly ere el fey ote ne ‘hon ty ont eee wing yu nO. Equa st woth to connec) {Stutethe mosthey wold swing py noe ‘hoetal dares demand ine esas ema be | eye om hat unt Hipp tha te ice nh mais? en nw yal nts up ut (ae bet UO 25 ‘Schott uti woth moe she han ee ke "eeu ith oy They woud ot buy ny ns ask Sie Fret, hy wl obo we Polson thom (hs 5 mach 3 ty 1 Microeconomics wold ewig py rit at met and en oat ‘he would be foc py) sigh ad ‘ellos ha @ unis a woth a (04 commas 35 ‘hatin oor ty wo ave bering po ‘Spy al te nts an 2 tet pero Fé he il ‘ppp ea (0QH? wey uns ote pce pe St esha crsned Conse sui ‘fron es PHF theca (OF) and seo, ‘va dlogran, consumer supe a below the and crea ae pce ere ts of the ‘oro comumed. Producer surplus fer may be wig fra eit od fo $200. ant pc or ent $200 thn tl era dese fr Wey ht fem end Hw a pec sup 15:00 sme a two ve bowling llr ie st fhe pce was ns $220, Scere nat ew Ie B30 tule fe tun ing tom a ous ‘psf B0 ces he pcs sul get eng btn hes ed st $4.20 {ate ing el hm adi ended ering $600 ‘the ore grec we ee dct spss the dfn Deen hat mee fo sling sone smear 9 goed ‘rd he isu ty woud tengo ‘rout Tbe alot doy he pod ass on 8 Inga Seman uel ele hat pce ‘norma ely Fie LL Pst Fore Qi py dag the veal ian ote rat miu fr uss the aspect unt Ts robe ating cnt ong ater ut fe wel ve 2p ohlest ewig fea it. The miu wos ‘Sans thecal pera Lt i ala tat he ‘cave eg bt he ange ces MC) cae teen, fran ote ling to ofer ait in Fg 11.4, 0 Joost pce gure? dls distance GH) na cet ‘es ifhe pe as en sighs ay tthe oe (ey cad i) tere fm wo Rt have en walng ‘Ser ht tnt wl ig fr ver ss, pr at ot it culty re ra be iting ole ut he es pom egsnd o ‘ste 0 eso hapesthat he matt pice sda pe wit then fami be wing rps al its up and ining wit Thy woud ot be wii a oe ut as lon hb minira fs oud ef ing fe vs aes 00} wes esa fal erie ‘Esa up in OG air pc is ar tet me il cule aes (OF by seg uo the prc per ut (tse ary fo (0) 0 Puc sop sae JP hence betwen (oc na us ooh (On. diagram produce ups th ae aoe the supper adel te ce ete use (fed produced a ld. Social or community surplus Soc orcommuniy suplsis ded asthe sumo he cone sup ad he rede ups sa esi Siecle vee er L8Sdonmy w ‘nice 1115, vena mae en Pandan cio (gry 0 cna sup ea aa) while (Med sus aes WEP Gente dein esac Spas ols areal toa FEM, Allocative efficiency Teflon ae: Gen pla ema Conditions fora good a mat what se apna ‘Stor pods ad comme of a ond fom sce Dnt of ve? wold male see fo Set wart all {is of god tha oe wrth re ha thy ol ost pce DDowe have 2 meas of wat each esau «god ‘Swot to socey Can we deine he eta beet (the marginal ore that sor eros fem each ea Unt of he goed consume? ee aI mach tthe most osumes would iin pay fnjoy is he veal dance om exch Qo he samend cane Dowe aves mean of watt at sco peda exch taut age? Yen we de lowest mou hat es wel ing ap tO ‘ache ute gon. Ts the eal stan fo eh Ota he say cine ote main a (Gof Peuing sah ent. 4 i oe sere ey pe We stat soca een acid and ‘ear sors ave ben alc nth bes pss ay ‘the opt maint 5 pote tom oe sp le. itn mh oro Het saps ocd ad corse hn se ght ams ow ad capt ave ‘old nfs pric In ig 116 sia at of te goals’ in of ew dws, Sy ali enya nis {pun and ic un Fhe sui @ prog, Pte mre enh, maria berte (8 600 arin et HC).‘ ‘ i 1 ond for alos fina the re o maga erst} mst be cual to maria cost (a (= MB) = HC) forthe stot posted. iene fers hy fering 1116 ‘rol maton tbe edu sor $1800 ‘Sts [hehe no hy wl eer lng Fer wihmorethan the $500 e wou cst so ce (she mitra rs woud be wing tpt {Beton 9600 We co yt he mara Inde ace tat it sce wo gains sup ot $1200 fom int Sil out a wa me {st400) tan woud sto pose (8001 sy wuld {rina pls of $600 om ua The sane guna hls pul end incsng ut Qe wah sume 5s. muha woud eat oda thats (= M8) = HC What bout it 7 Soe wokl ot waht it scl seth wold ment coe aces od at be opel wed. iy? ease tha un worth arses lesen twouk co 0 peace it OO" wee ec ct woud Neo ups om Re pcton eal wold eo pro a OE fom Se pact aus CO hata nts we peed adr soe ean unis (7 weer proce’ an eye net? Te sey woul vent the sas peste the (A) 2 {isu ral unt Qa woth moe han hy woah eat ‘epee pti ome hand wis, porno Sauls, flows tay podueng way Q ‘itp ev solace Samy ort ast nt potund (= B) = MChen allatie ‘fice ached dnl mn smd.