ECON 103 Lecture Notes - Lecture 9: Demand Curve, Economic Surplus

• School: Simon Fraser University
• Department: Economics
• Course: ECON 103
• Professor: Douglas Allen

Document Summary

The full cost of an item may include more than the nominal price. The full price of a good includes the cost of time. For some goods, the time component may e the most important. Full price = p + w x t (p= nominal price)(w = cost of time)( time units) W x t is equal total cost for your time. As the value of time (w) increases, the full price increases (if your low on time, the overall price of something will go up and you are less likely to buy it) People subsitute into goods with less time components. (water machine at starbucks) In north america, the value of time has increased steadily over the past 80 years. Difference in time costs show up in differences in behavior. Mormons vs jw"s giving time vs money. (mormons spend alot of time on education =