SUPPLY AND DEMAND I THE HILL METHOD

Problem: Google to Give Staff 10% Raise

1.

Price : Draw a supply and demand curve: Label all axis Label

PE

equilibrium Price I Quantity with 1

Quantity: Internet Services

QE

2. Demand Taste Income for normal good Income for inferior good Price of substitute good Price of complimentary good Number Buyers Expectations of changes in Price & Income Price of good (Px) Price of good Supply Cost Nunber of Sellers

(T) (Yn) (Yi) (P sub) (Pc) (#B) (EXP p,y)

(C) (#S)

(TECH) Technology

(Px) 3.

Read Problem, and Star Determinant Changed

7. Draw Formula to solve Problem: (always same).4. DEMAND SUPPLY PRICE QUANTITY Change supply and demand curve accordingly: Then fill in last two components of Formula PE Quantity: Internet Services QE DETERMINANT (Yn) DEMAND SUPPLY PRICE QUANTITY 6. List the conclusion : Justify the determinant that changed . then fill in first three components DETERMINANT (Yn) 5.

Sign up to vote on this title
UsefulNot useful