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  • Supply and Demand Framework

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    Juan Pablo Arrivillaga
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    1. Microeconomics studies how consumers maximize utility, firms maximize profits, and markets maximize social welfare. It analyzes how prices influence production and revenue. 2. Mathematical modeling adds precision, clarity, and cohesion to microeconomic analysis. It uses functions and graphs to represent supply and demand. 3. Supply and demand functions show the quantity demanded and supplied at different price levels. The demand function depends on price, income, and consumer preferences, while the supply function depends on price, input prices, and technology. The demand curve on a graph slopes downward and the supply curve slopes upward.

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    1. Microeconomics studies how consumers maximize utility, firms maximize profits, and markets maximize social welfare. It analyzes how prices influence production and revenue. 2. Mathematical modeling adds precision, clarity, and cohesion to microeconomic analysis. It uses functions and graphs to represent supply and demand. 3. Supply and demand functions show the quantity demanded and supplied at different price levels. The demand function depends on price, income, and consumer preferences, while the supply function depends on price, input prices, and technology. The demand curve on a graph slopes downward and the supply curve slopes upward.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    6 views3 pages

    Supply and Demand Framework

    Uploaded by

    Juan Pablo Arrivillaga
    1. Microeconomics studies how consumers maximize utility, firms maximize profits, and markets maximize social welfare. It analyzes how prices influence production and revenue. 2. Mathematical modeling adds precision, clarity, and cohesion to microeconomic analysis. It uses functions and graphs to represent supply and demand. 3. Supply and demand functions show the quantity demanded and supplied at different price levels. The demand function depends on price, income, and consumer preferences, while the supply function depends on price, input prices, and technology. The demand curve on a graph slopes downward and the supply curve slopes upward.

    Copyright:

    © All Rights Reserved
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    of 3

    NI

    1
    FÜR does Microeconomics tell about thewon

    A Consumers Maximize Utility


    B Firms Max mire Profit
    C Cover maximize Social welfare
    Revenue
    Poner influence
    Reelection
    Innovation is what improves the world Makes things better
    cheaper more accesible
    2 What does MathematicalModeling add
    a Precision and clarity
    b Cohesion

    CHADTERI
    1
    Supply and Demand Functions
    a Quantity Demanded A ofgoodsconsumers are willingtobuy
    for a specific price
    b QuantityDemandedis a function
    Price P of
    Prices of Relatedgoods Pr
    Income I Expectations E
    Hey buyersIN Taste and Preferences N
    ad f P Pr I Nb H E
    c Quantity supplied is a function of
    Price El Ima Prices W
    Number y SellersCus I Expectations E
    Technology T

    Qs 9L P N T W E
    8 Demand Carve 2 dimensional graph ofthe
    function f holdingeveryinput
    variable constant exceptprice

    E Inversa demandfunction
    P f Oo

    2 Law of Demand Supply and


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    F
    6 Slope
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    Off
    2 Slope is Positive
    C Normal Inferior Goods
    1
    y 0 Normal 2 O Inferior
    Ego Good QI Good

    Empirical Specification
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    Y
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    Demand
    supply
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    B Withdata con el PI Ni.US etc


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