j.0¢robel= 2023 prtity An lysis’ ieee Pes —saerling (outta eons i om : pudgelling Benaviour ri i re Give ime cereneins i “hupentes te 2B enn’ Pe AP. fa. wir is an_obyecve approach — - Pa reas Aaltls (arose i _[cardinas cpproach) fo ™ ulility masimisanion a) where utility can be pledsely measured. 14 Chows Vari ous Combinations of two gues which the individual con gel “mz Pa A+ Pp-® Bees #3 ce (Rand p ate goods cunits), sd ek Po and fp are the pricos deen tite min onamantet ST et _ propemfies oth Felting vine | garope of Pudge! att = prices = SEF — a. e atte A‘) income harge aay ive range Cm ty “Shift aw + 3 yachs(t end ara) el tis pudgertioe paralely uy en ee eat rightwords:. 2 vga la) eS : eK $12 40 424 > Shope of budget consmaint is a uo fo phe o of good on —otations omental axis by flict of : geod price <& change determines On VOL axig: the _osati on Sree CS aac ANAIMIAU AN wo} interpreta Net go 2A 1 gain 38.pre Of AW) budger me __FOtares inwaras: when pice Of 0 good dectines, the real income. jncpeases._ On the @ontAry, read ihcome Showa decrease when IN& pane rises 7 : Pa ° P pls BL) Pa pe = constant 1s ta decunes SEN| 4 eae lee 24 2-208) 4 $8) | ; - . —____—— i 6 4% sry Fes(g | at pe (12) 2422 F Sto i 24 = 23) 4eS ry u | | ieshob er-20.24 [ Indifference Carve ndif{erence Curve is The JoCWs of points hid shows aifferent combinations of two Goods and Ublly oblained Subjedively. oyainal app roocn Yo wtitityy Marimi2ation. Hropertics of IMAI Kerente curves N They ore conver {0 origin _+ To substitute one good to another is cated Marginal Rare of Substlution _Limas). + Because of Ms, You indease one good and deine others. This also depends on Pleferences, and hadeoff and Opporsunity Cost Conver Cue Concave Curve become, ara i ar ene prem 2) Cuives are _neganvely stoped b — Caves ove_Negatvely stoped | becauiye of law of diminishing _ : _nawginal, tility. te Tut mod Sunt Mgtpersed : . that a) Ind ((HEOUE ye ——— castes cannot IN 3) Andifference the (0 Connor interser_ because © has 0 Aigerem toad willy: a 7 “yyinaiffetence_aniyes in_sne quadrant oT termed Os __indiggevente maps: Ses : —* . : AS ing at © u __ point fo - oe oe Tuc £ Tua 6 Ture _+ al every point ‘lat ality stays came becouse if ___ You increase ones the other one decreases _ £) Equilibrium occurs op | Yongency when Slope of the. __budger tine _equaus margina\ rose ss tukarniion iL MRs = APs ution = > Pe ——SSe Tangent ot or - oN So — ~~ Derivahon of Demand Curve oo ee + ftice of B increases _ as oe __ budget line vorates inwards a Panel A + Paaits imitist_equilbrium ——_ eo Pb is finat_equilibrium —_“PCE of & decreases budget tine VOlaves outwards “sat Pa 3 Paz oe Ponca a lee oom om : asa BRT _ PRK toe nace alas ao + n 7 aa __2 Reat_\ COME ined se. a = i s mn 6 \ a A es eee ET? i _ fois initial equitibnig. Pb 4s FINA! eq Ulli biium Svostitution and in SME Effets of Normat Goods No ae ee Normal qoods = goods which follow the Law Wot demand _ a Poa _ . _ oa Sra ee ftioy | — ad Substitution effets t the _qunty a doth He pute, angeIncome CFFCLs The change In real income with price ange » Ihe real Income either indines. or dedines sd pice of ® increases , and B is @ normal.good 1») Initias equilibrium is a va —_——— 2 _finad equilibfium is b ’ 4) Price of B increases s Teal income decreases from b Mm y) AB = Price effect = Subs effec + income effect re et 8) _\nvoduce_an imaginary budget ling fangent OM point m 8) Itbrings back the consumer to original indifference uve. Drop the_perpendiaular from all 3 points of equillbriuen _ ns Imaginary equilibrium point __ O-m+ Beet prego m-b— income effectsumption Atuiegses taht ead encamng, decreases, COMPAMP Coubstitation and income effect for normal goods ate 10 on, as to be equal) + Subshtion ond income fffeas Aivernon Gif price 4s both pe {> Qb = am + mb i = subs + Income = -ve rve es a Giffen Goods SAYRE of quod That violates the law of demand ————__ —______.___f # 64 an a PA Ot quality improves , price Increases LL 84 _ quatdty deatines, price decreases Most inktrior types ef quads Dy sift eNGe— ai 4o-octorbet + 2023 [ | @ Normal Goods. danas Demand CATES —— ~ P <= ‘ initial equilionun: Giffen Goods and Demand Curve Good Bis qiffen geet “pyneth a az ipihal equilibrium be final equdibuum __ Cost of Produchon ooo te fo_putchase ; ane paYMeN Cost refers Tos price and monetary pes ~ —— — good | service. 25 + economists see | aM ek 1 vist ble expense idden expense divect U ost cut cost bedded cost dh J) implicit cost —#| e —> cost of M thea alternahve_ not availed eee >) opportunity cost = (i __ WD fixed cost + cost of | basic_equipmen : __5) variable COST changes. wl level of produution & output _ expiiats Semplctt cost + to_yun the business prom: __§) Horal (ost fired cost + variabie cost = profit tral revenue ¢78) - fetal (ost (70 © Types _ 2 Slowounting” pra file ELIA) 2) cronomie profit CEP) : eeeMP6, EC Z— Business ACCOUNTS a ore - Tota’ Revenue 4 120, 000 é of tshirt zz Cosr of tshitts $40,000 wehauc purchased buf hew muh fe Clerv’s canary $18,000 Tondircomlp gra hadi'ts cuties forgone interes? $1900 income which wuld've paid bur ne! a forgone vent $ $000 if rent wouldve been, wnat it be ____ forgone. woge $22 000 for_enterprenuet invome S000 : CAraUake ACCOUNTING and economic profil : ae Ap = TR- Caplicit cost - = 110,000 - (uo C00 +16 000 +2000) =.$57 000 mT tP ths TR - ( expucil timp? = $20 000 - (40 O60 ¢ 18000 F SOOO + 1000 4 Asgoo + 22.900 48cee) = $24 060Problems - Page 266 helpers. .SUR000 0 D2 went o= = : e 2) materials = $ 11800 iubsiea tunes. 5 M000 | forgone investment = S880 Jogone salary = 4 14000_ enterpreneual_ income _= 32500 : Yeenue = 1S 000 wets : - 4S000_ ~ 13000 -ssooff - 91 sou a = 35000 ee AP = = AS OW - 13009 Sg gy. ye ~ i ; hogy SH: 800g =19006 ~ 2500” a een es-novembe1=2023_ aw of Piminishing Returns assump ons yy | H a) technology is A fixed tesource _ fou Vabow is A variable resource 3) short dun Cproduan on) _Showtrun vs | Longtun 4 a fixed resource 2M resources become _y Grable 8 and “expansion 10 4es p pes a = vari Ie rescue _ 4 i capansion does - tate pia e ___ Statement As the successive units of variable resourte are added fe the _ fined reso resource , FOIA product increases but the marginal t __plodiur_deatines mes OTe ae ~ BtabovF units eflabour labourSTEEP fal cosy, TFC= torat TCD TEC + TVve_ Cost Graphs : tes ree tive I v ae me er eo). m = - fa fe voy) 8 nd diTvocd gost of addahboar ouspur = ©)) Relaje me cuwe with mP cure peeduding=< —$——= = —_ e 6) Why is ave curve in uch, ape? hem the firm sped ali ces in. prod 7 udon 7 I LL sone nd in | und cost de {in oy ae F PUINGS which tb swing ir ts | : an BNC f sf i = fF Sle yee td: oe 3) What are explidt and implicit cosh of attending Udi versi 4 cit 7 semester fee, fuel cheuges, books cas! hobbies : impli git = Test otf fewest hoa! _ my eet ae pt cena et 4 at ater elonantaly SO i ane, ef pees = a eis he oe? wal —_ ee ERS te So eat ge Be r vealed aunt { procluees ane ~__wono miss _¢ speels rey X nds pf become ven ably phe u qt mM mit AT eerie OY06) What pesourr* Ore tuseat tn seelsnanenspoge a Ee ee sn ee| gue Fy ve competition ie i isd navket model : pai yet model Cpraure petite) c 2 _ ho pian mat re many “buyers | and _selles yy rere a L pa a) Price Temas. uniform but Vhere is 0. -conhol over prise. Ly L i) 3) ) product Ag homogeneous i Pri ire : Le yp yj There is free entry and exit (02 documentation hassle) 4 ere is NO Govern i" o _s) There no_qovernment jnfewwention gy Demand remains _peitectiy etastic i pure = AR= mRz0 (aren f ae | OEE. — Lo pf : maz ARz © oa ng yun L _preakeven point = site normal ~ prone a Bonet a soft 2 — Lop pany, coo 8 etm : f i 4 1 pure vie competition applicable tn Re in reat_woud ? 2a fue competition in not 100+ applicable, but appicadte in PITS nd pietes in the regular marked: <>raters seed Fer cecmple aguicullure needs Land waters se - . 1 , $s a og N i Simisay for everyone: Harvest! 10g stoge. ts : Simiy Nar fo 2 And not CXEMY Farmers Point Hill Uutvaling Crops Su po indushy i, pure competitl NINES: They buy on Iw sige ond seul aoe . aoe - — TN! S4OM cathange- To Nade shares, You are orig | “i. Aligivle_ Con) need qualification) but ability to bade 73 and MAKE more profits is different: ths gs sIhdtive ¢ ee Can, in. be 0 part if you. ha “Evang: Radiocaps a a airports. "2 Cellttton phone services eee Prafit_masinisation ) TRe te even [Aormal profi: Pz 2) TR 2 Te a PL FRI - pe a tie Vel) 3) TR > Conomic Toit p Tt FTP ER Te ay TA = = AVC indifference P= aye aude twsparar conii sy TRE Ave “shutdown PRESTO-november- 2023 _ Short bun Pr, }MARimi sa Hon _ marginal revenue i AS_additionat | cost to >_produce_ additiong output “marginal eest tevenue- margindl cost approach. fears Zz pe] i. 5 | 1 L — | e 6 é me = OTC. 4 -_ — 56 = a ——— ———--— -M&K= ATR os - "be oe ooo eo ao Intersection of ME. and ma determines It the “equitibiur’ and de jeter no bata tel ee —| prea under ATC cary - pred under MR Curve qrofit Analysis © TR > el S$ TC Girsarca.as (ATC KO TC) is TR Tr) > TRZPKE Tos \) determine equiti bum point _( g drop pexpencl aor on 6 3) TRarea is OPe Oz: 4) osparee to derevmin © vertitay and bovizontally ~S) Profit of firm woul!” interseution of MC & MO Cins whith Gtves equ: quanhy (mp2 8) wat creas extend 1ine from pemnt (tc = OTC?) pe. TRe TC | Pe CT)A 2o-November: 202 Pave Competihor m FER me Approach. , ye “1 Toft maximisation occ 1M short Wun me_aeteimine 64: aion of me ond “sgn mB I8 the demand uve oniom of mete Ihe supply uty’ Ont osthtve Revenue AR =P Mea MC | omRa = mC at —. wr tte oo ot ‘ - 10+ b- A7 ere [a hs = 4019 = SiG _ 329-000 | Elas HUN es + s.r : RCS Or 2 = ~O.3% aes | = fo-is C2 = Ae Xx Po AP R2 _ +6 eX 2\ 24-Navembey-2023 of goods and | suaion Toral proc (oss Domestic Product * athe bordes of a 2 Pahiog : wilhi services in a given time fiame an \ ace GnP = anp - NEP ree =< —__ ae ae = pas — Grece_National Pro duds - ~~ Payments. mode tthe fetieved by locas pation | _ Net Facyr Payment CNEf) “foreigners by locals = Payments _ foreigners dein ge ee SE # a _ Calo renvitances) ane net “exports = = exports - imports: GT0Ss Domestic Product ___e methods to measure We I Produg memod une 4) Income tutod ea 4a) 8) Ppendtture method an. fre Move must Must yreld tld analogous t resus. If She results Gre not equat Ol Then hea one eae — vo Agta TE Geeps Lets crepamie soe Tere eee eea ——- A yypotbencch Ceonomy. with teeta pa aha orange Ine Transactions woges paid bisovo Taxes paid Sow brange> S010 %° public Biogog _ Revenue — ‘Bie wa. $5000 gran ges s0'd FoTuice Ik $2500 Wages | ike Revenue Tedeved - b40000 industry. B > Engaged in poduiing erange juice ard Selllig f public ~ Pyodud metbad Vous odd ed = finak produ - Wl eim edide Prod wr profit + ++ Ones swoges + SOs + Saintes * propreitacs income ——— Exp enchitwre method It aber into count dtimate users of the hey mpgs inom Stselt« empoyed produ: oo Lend uyes) Jan 100 a 2 350 Vatue added for A 67 up o00 7 25° _ Vatue Nace to i = Sea, 5000 #15000 jae abl por’ Ef Income method with before ___ ignore fares” us es oo = 3S 000 no OGES 20 000 + Is 000 7 we Ro — = W000 - (10 boo + 25000) = wages = S000 4+ lo pos. = o00 45000 + '§000 = 50066 zip is HO ome Method after Fox proht — Seta Pe BF way es + fares- Cal ISooo (S eS = A ue 00 +166 = 3g obo oo) 30 10 000 2000 amma) ma 6 3000 - 006 See me | ; ee BOT So oOvuv a iExpenditure Mettod .. |. ___branges so id ty pubie w are uw juice U Ga B S : FO ee ee be £0000 40000 Get. ee he neased economy, : apr of * lo a yecrT+ cane ie x Vs Gor C= Conswmphion oN a T= Investment au ac M << me Gaz Govt spending qutonomous = in depeng SEIF gove, more - | L cz at byo pa __a = Gutonomous contin prio? ee _b = marginal propensity 2. consume __ e cone | _Yp 7 disposable income __ _ a _ Yo = Income earned (Y= t SUCH Os Us as students _. Concumption which stands even when an individual is Rot earning __such_as_unemployed_, Kemporarily employed =z you_are not earning but enjoying all privi ee a ed AGS: nde 2 Change in tniome without faxes __—~" — b= AC wilh tones AYA ~ _1 Onahge in cons: ie =e “umptlon is be oF change ; __difeatty retatea ——30G€ 19 income and is ~~ 5| | ytomct : Proved in budgettine a ye cs _ rodent Buagertine (income with timitghons) 7 mes = Marginal tropensity 19 save = mec = MArGinal Fropensity © concume Lewin atways be tess thant mec + MPs 2CtltG Y substitute ¢ =6 +h Yd a+bYa ttt” SS Yo tYot Dye rby-btereG aa _s Ye by = o-bTsttt -b) s g-bTsUtG —___— ; oe KL ay rs ema 7 i ee penditures (qe bT+T40) > outonomaus expert : _ enditre mull 1 > autonomous _€* P _—— \ (lb) . ooYE 0 4sat _mpcrmps = 1 : oe rt mes ct ae aera RES SE weg =| SING Funaion ee | Y= C*s4T LS beer ‘ Y= a4 bYp HS+T N-T s a+ bYo +5 : Yory-T Yo FG sb Vy eg ba U-by st = 5s Ds Yo ~ G@- bY»9 = S= TO + Clb,Mages : ee) eee Vi aves in Ss reall invedment OF GN inje dion wp; : pis he 100 whith goes into bidiehe auth okiol 40 _vippieefted we rnulh ple_incomes ur all incomes is termed ym of nee Oe snap “sig. Gear en inihal injedion = T+G eset Leakages fyi 2 Government Spending mulhipher ai \nyestment multiplier si Money multiplier he ge Bef Set a tan mulliphet / thriving economies have 4 strong “muthplite, and Aveo ping counties have wea mulhplier effeds: - developed “Countriesremember idennne ‘pe bre #316 Sys oe eit FT AT at pred+GroG it = Oy + bAYH OC py - bAY = 6G AY( 1=b) > AG aYs 1 a AG (1-b) AG = 19,000 needs 2 b= 0-2 DY=invesiment Toallip ley bY as SBT \i-b) —. a Seu oo) eee does ey Ye G4 bYO HERG ee yenys od b tye OW -bt4 Ta gree sisling a bAY-bT+I+AT 4G Sins 7 aby bt 4G si : ae | Pepe consume more, sove tes 2 | O° * Sie more true tes bro | — _ ST AT = 8000 al = 10 000 a — y Z BV 2tlN 24 242143 ‘ = bo — AE <1y2%6 wo 67 #1 _NW medium of exchonge > Yoo! 2)_unit_of ACCOUNT > measureMe 3) Store of valu eorstoring “when money was not stand a arter system _-in_barter system. Hhere_wil) he Mm for 10 tems (9 direct _e sch arg money solves | problem aber tere. offer fom. uMliple price ot | good. gs Psenvices purchos terms Of Pees ot of. goods i orth of an asset CIhS © OFTH incteg, ow g—> barrer system e of goods and services Aside combi nanens = 10g” SUS different price. 1 shows 100-1 rese Sved_b anting. + There. 1s _po_tenaing 1 Pank only _onarges sman fee to keep re P_money eg whan Geceptare x, L ng,YY = Vesevve vation yeserves = 10 eta 5 1 j ly Gns = V0 oD deposed eeWhENe + Unotn Goes on- T= mnuc. LWeated od) eee + Money supply =< ms ms = s x deposits _ yy j 2 Le Bote * deposits z1D0 ; 7 x 1p = /000 C rou tnpree se©6-December-202> a ; caret cor yaont Nominat Gor caren! yer" ns ss ser , cTaly 2 2028) x tune Bo ~ L 5 borat produetie’ ce current yter prea Le Reai anp= wmnt YY GDP peHlator < IF is 4 aa pation SSA ipa wre we vf sens 1) nomi al G rf ; pomInal GDP in base Year and JING Gxnrent Gea! nent Y eg” 2) feos OP | Se a ah tcxtor in BOS€ year nO Utrent yegt minat and reat apr OA Gurrent yea ie 7. Ss oe Y2_—— are came 7 &_IN base Yen 44 “ominal Gnd real GPP in hase ear , £03045) # 026% W 403534) ar ; Bos: - ~ - “at «pear will be 1 as po “po ch ng. ep Apes ‘ ‘pina are rat Gop i in Lurreny year. Chase yew pres, Curran Yay quanb ye (uo ys) 0404 C24 x5) te 2 (HO 46) (Soxsl+ (24.4) 5 S06. i hemo ate