ECON101 Lecture 11: Week 5 / Feb 6

• School: University of Alberta
• Department: Economics
• Course: ECON101
• Professor: Gordon Lee

Document Summary

Course introduction - economics de nition, economic choices, normative vs positive, econ as a sci, ppf (6 questions) Markets - who are the players, motives, diagram, (2 questions) Supply and demand - change in quantity demanded vs. change in demand, change in quantity supply vs. change in supply, Supply and demand w/the govt - forces in the economy, price ceilings, price oors, quotas (4 questions) Elasticity - know how to calculate & interpret elasticity of demand, revenue rule, other elasticities, taxes (5 questions) Consumer behaviour - assumptions on consumer preferences, utility, marginal utility, law of diminishing marginal utility (2 q) Today"s agenda: midterm preview, consumer equilibrium, individual"s demand curve, market demand. The consumer"s objective is to maximize his utility given his lvl of income. (that is, you want to spend your money so that you are as happy as possible). When the consumer has satis ed this objective, he