Determinants of quantity supplied

profit = total revenue - total costs
objective: constrained profit max
   
1. price of good or service
  direct relationship between price and profit
 
2. cost of production of good or service

wages
  inverse relationship cost of input and profit
productivity / talent
direct relationship between productivity and profit

 

 

 

 

 

 

 

 

 

 

 

"CETERIS PARIBUS"

Qs = Q [ P, w , t ]

 

 

 

 

 

 

 

 

 

 

 

 

Supply curves

 

 

 

 

 

 

 

 

 

Market Equilibrium

 

 

 

 

 

 

 

 

 

 

 

Minimum Wage

 

 

 

 

 

 

 

WORKERS LAID OFF C TO A

NEW LABOR FORCE ENTRANTS C TO B

 

UNEMPLOYMENT RATE

U-RATE = (B - A) / b

OR

u = (LF - E) / LF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CPI DEFLATION

 

 

 

 

 

 

 

 

Price Controls on Natural Gas

 

 

 

 

 

 

 

 

 

off/peak-load pricing

 

 

 

STOP HERE SPRING 2012 FOR ZAM 2

 

 

 

 

 

CRUDE Politics

 

 

 

 

 

 

 

 

 

 

Economagic

CRUDE OIL Prices 1972-2012

 

 

 

 

 

 

 

 

 

crude oil price Speculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partial Passing Through

 

 

 

 

 

 

 

 

 

Complete Pass through

 

 

 

 

 

 

 

 

 

 

 

 

© 2011 Vanderbilt

 

 

 

 

 

 

 

 

Trade War