BIOCH498 Lecture Notes - Lecture 8: Demand Curve, Economic Equilibrium, Intelligence Quotient

• School: University of Alberta
• Department: Biochemistry
• Course: BIOCH498
• Professor: Brian Lanoil

Document Summary

Forces; ceilings/floors: elasticity of demand 4qs (what can impact the size of the elasticity, other elasticities, application, consumer behavior. If n i > 0 = normal good (positive) If n i < 0 = inferior good (negative) Income elasticity will not become very responsive. There are goods that have very unresponsive elasticity (i. e. caviar) N ab = change quantity of good a change price of good b. > 0, good a and good b are substitutes (positive) If price of b increases, quantity of a increases. If n ab < 0, good a and good b are complements (negative) If n s > 1 = elastic (positive) Suppose the government imposes a per unit tax on a good or service (i. e. you pay for 1 unit, you pay 50 cents tax) Note: government imposes a per unit tax. Supply curve shifts upwards by exactly .