Economics 1 (EC107) 2013-14: Micro (Term 1) Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 The circular flow model Agent: Households.

Slides:



Advertisements
Similar presentations
Supply and Demand Shocks Unit Four, Lesson Two Economics Economics.
Advertisements

Robin Naylor, Department of Economics, Warwick 1 Topic 3 : Lecture 17 Perfect competition and Consumer Surplus X p pcpc D Consumer Surplus is given by?
Robin Naylor, Department of Economics, Warwick 1 Topic 2: Firm Behaviour Lecture 11 The circular flow model once more Agent: Households Market: Goods/Services.
Robin Naylor, Department of Economics, Warwick 1 In this lecture, we consider what factors influence whether there will be a large or a small number of.
Lecturer : Muchdie, PhD in Economics  PhD in Economics, 1998, Dept. of Economics, The University of Queensland, Australia.  Post Graduate Diploma in.
Managerial Economics-Charles W. Upton Valentine’s Day.
Economics 1 (EC107) : Micro (Term 1) Robin Naylor, Department of Economics, Warwick 1 Economics (Lecture 1) Welcome!
Robin Naylor, Department of Economics, Warwick 1 Factor markets: The Labour market Topic 4 Lecture 18.
Robin Naylor, Department of Economics, Warwick Topic 1 Lecture 9 Applications of Consumer Choice Theory 1.Labour Supply: The Income-Leisure Trade-off Leisure.
Economics 1 (EC107) : Micro (Term 1) Robin Naylor, Department of Economics, Warwick 1 Economics (Lecture 1) Welcome!
Lectures in Macroeconomics- Charles W. Upton Equilibrium in Two Markets Basics 1.
The Circular Flow Spending Goods and services bought Revenue Goods and services sold Labor, land, and capital Income = Flow of inputs and outputs.
Demand, Supply and Market Equilibrium
Supply and Demand The Heart & Soul of Market Economics.
MANAGERIAL ECONOMICS 11th Edition
Ch 25 Saving, Investment and the Financial System.
Robin Naylor, Department of Economics, Warwick X X Px a a b â The total effect of the price change is to move the consumer’s choice from ‘a’ to ‘â’. If.
Robin Naylor, Department of Economics, Warwick 1 Topic 2 Lecture 13 Isoquants, the Short-run production function, Marginal product of labour, and firm’s.
Supply and Equilibrium Lesson 2.6. Law of Supply When Prices go up, quantity Supplied goes up When Prices go down, quantity Supplied goes down – Quantity.
Introduction: Economic Issues Introduction: Economic Issues.
Chapter Three: Supply and Demand. The Theory of Supply.
SUPPLY and DEMAND The basic model of market economics.
Equilibrium Market Prices Economics. The concept of the equilibrium price  Equilibrium means a state of equality between demand and supply D S.
Robin Naylor, Department of Economics, Warwick 1 Topic 3 Product Markets: Lecture 16 The circular flow model Agent: Households Market: Goods/Services Market:
Robin Naylor, Department of Economics, Warwick Introduction Lecture 3 Demand Elasticity The Price Elasticity of Demand for a Good is a measure of the sensitivity.
Chapter 4 Demand, supply and market equilibrium. Let’s remember Colleen and Bill Colleen’s firm supplied logs Bill’s firm supplied food Colleen DEMANDED.
Robin Naylor, Department of Economics, Warwick Topic 1 Lecture 10 Applications of Consumer Choice Theory 2.Inter-temporal Choice I 1, C 1 I 0, C 0 Think.
Activator  List as many goods and services that you have used in the last day. Then classify each good as one that lasts less than three years or more.
Economics 1 (EC107) : Micro (Term 1) Robin Naylor, Department of Economics, Warwick Topic 1: Lecture 3 The circular flow model Agent: Households.
Supply and Demand. The Law of Demand The law of demand holds that other things equal, as the price of a good or service rises, its quantity demanded falls.
Agricultural Economics
AP Macroeconomics The Circular Flow of Economic Activity
1 of 46 Lecture 3 Demand, Supply, and Market Equilibrium Firms and Households: The Basic Decision-Making Units Input Markets and Output Markets: The Circular.
Chapter 3: Demand, Supply and Market Equilibrium.
ECON 1 The functioning of Markets The interaction of buyers and sellers (Chapter 4)
Robin Naylor, Department of Economics, Warwick Topic 1: Lecture 5 Demand Analysis: Constraints We said that our understanding of Consumer Choice rests.
Demand for Labour Demand for labour is a derived demand, which is determined by the demand for goods and services within the economy. When demand increases,
Robin Naylor, Department of Economics, Warwick Topic 1: Lecture 6 Demand Analysis: Change in price of X X Y X max 0 Y max X* Y* a What can you say about.
Factor Markets Unit IV. Basic concepts Similar to those of: – supply and demand –And product markets –Same concepts with new application.
1 Chaps 4: Competitive markets- how they work characteristics of competitive markets demand supply market equilibrium and how to compute it welfare properties.
Money Market Graph Why do we have it? What makes the demand curve move?
Zuroni Md Jusoh Department of Resource Management and Consumer Studies Faculty of Human Ecology, UPM PSP 3000 Demand, Supply, and Market Equilibrium.
Introduction: Economic Issues. The Economic Problem Economic problems –production and consumption –Scarcity: the central economic problem Macroeconomic.
Robin Naylor, Department of Economics, Warwick
Robin Naylor, Department of Economics, Warwick
Supply and Demand – Supply and Equilibrium
Robin Naylor, Department of Economics, Warwick
William A. McEachern The Market System A Contemporary Introduction
Agricultural Economics
ECON International Economics
ECON 160 Week 4 The functioning of Markets: The interaction of buyers and sellers. (Chapter 4)
Unit 3: Supply and Demand Vocabulary
The Circular Flow of Income
Chapters 4-6 Test is Tue. (Ch. 4-6 Warm-ups due on test day)
Unit 1: Basic Economic Concepts
Ch. 4-6 Test is Wed. (warm-ups due Wed.)
UNIT TWO INTRODUCTION TO DEMAND & SUPPLY ANALYSIS
The Circular Flow The circular flow of economic activity shows how firms and households interact in input and output markets.
Unit 3: Supply, Demand, and Consumer Choice
Unit 1: Basic Economic Concepts
The Circular Flow of Income
Introduction: Economic Issues.
See Handout (contains whole of lectures 3-5) Topic 1: Lecture 3
Chapter Three: Supply and Demand.
Chapters 4-6 Test is next Wed. (Ch. 4-6 Warm-ups due on test day)
EQUATION 2.1 Demand Function.
SUPPLY AND DEMAND I: HOW MARKETS WORK
Unit 1: Basic Economic Concepts
Aggregate Supply & Demand
Presentation transcript:

Economics 1 (EC107) : Micro (Term 1) Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 The circular flow model Agent: Households Market: Goods/Services Market: Inputs Agent: Firms Demand Supply 1

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 Demand Consider a Demand Relation: What are the influences on Demand for a good... ? X pxpx D a popo XoXo How does a change in some other influence affect the demand curve? What does the slope of the demand curve tell us? b 2

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 3

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 4

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 5

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 Supply Consider a Supply Relation: What are the influences on Supply a good... ? X pxpx S a popo XoXo How does a change in some other influence affect the Supply curve? What does the slope of the Supply curve tell us? b 6

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 7

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 Putting together Supply and Demand: X pxpx S pepe XeXe What is meant by the ‘market equilibrium’? What are the possible properties of a market equilibrium? D 8

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 Comparative Statics: X pxpx S pepe XeXe What is the effect on market equilibrium of a shift in demand? D 9

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 Comparative Statics: X pxpx S pepe XeXe What is the effect on market equilibrium of a shift in supply? D 10

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 11

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 12

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 13

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 14

Robin Naylor, Department of Economics, Warwick Introduction Lecture 2 Now read B&B 4 th Ed., pp