ECON 200 Chapter Notes - Chapter s and p: Trade Barrier, Demand Curve, Root Mean Square

• School: University of Arizona
• Department: Economics
• Course: ECON 200
• Professor: Steven Reff

Document Summary

Supply and demand model is primarily a microeconomics model. Supply and demand graph is used to analyze the effect of a changing variable on price and output in a particular market. In microecon, the topic of different types of markets is covered. In macroecon, you should understand that all markets are not the same. Markets work best when: the market has many suppliers the market has many consumers the buyers and sellers have perfect information there are no externalized costs or bene ts. 4: both the buyer and seller ful ll their agreement. Law of supply: the amount that producers are willing to produce and sell (quantity supplied) increases when prices increase and the amount producers are willing to produce and sell decreases when prices decrease. Assumption made is that rms experience increasing costs in the short run. The supply is the schedule of various quantities that the seller will provide at various prices.