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THINK PINK

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D

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Market for �pink shampoo

Market for �pink conditioner

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Market for �pink shampoo

Market for �pink conditioner

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Q

P

D for L

S of L

CS

PS

P*

Q*

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Q

P

D for L

S of L

Q*

Tax

Revenue

DWL

Price �buyers �pay

Price �sellers�receive

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​

Relatively�elastic demand

Relatively �inelastic demand

Q

P

D

S

P*

Q*

Q

P

D

S

P*

Q*

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fashion photos

philosophical treatise

fashion photos

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FIRST MID-TERM EXAM

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SPECIAL OFFICE HOURS

Thursday�Feb. 18th

12:00–3:00pm

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MID-TERM

REVIEW

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FIRST MID-TERM EXAM

15 questions

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1.

​

2.

​

3.

​

4.

​

5.

​

6.

​

7.

​

8.

​

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1. Cost-Benefit Principle

​

2.

​

3.

​

4.

​

5.

​

6.

​

7.

​

8.

​

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WHAT ARE YOU DOING HERE?

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WHY DO YOUR HOMEWORK?

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WHY IS AIRLINE FOOD SO BAD?

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FREE FLIGHT?

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1. Cost-Benefit Principle

​

2. Principle of Comparative Advantage

​

3.

​

4.

​

5.

​

6.

​

7.

​

8.

​

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1. Cost-Benefit Principle

​

2. Principle of Comparative Advantage

​

3. Supply-and-Demand Model

​

4. When Ceteris Is Not Paribus

​

5. Gov’t Intervention in S&D Model

​

6.

​

7.

​

8.

​

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Q

P

S

P*

Q*

D

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Q

P

D

S

P*

Lost CS

DWL

price�ceiling

P*

QS

QD

<

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Q

P

D

S

P*

DWL

price�floor

QD

QS

<

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1. Cost-Benefit Principle

​

2. Principle of Comparative Advantage

​

3. Supply-and-Demand Model

​

4. When Ceteris Is Not Paribus

​

5. Gov’t Intervention in S&D Model

​

6. You Must Not Know About Elasticities

​

7.

​

8.

​

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Q

P

Perfectly

elastic

Downward sloping

Perfectly inelastic

DEMAND CURVES

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1. Cost-Benefit Principle

​

2. Principle of Comparative Advantage

​

3. Supply-and-Demand Model

​

4. When Ceteris Is Not Paribus

​

5. Gov’t Intervention in S&D Model

​

6. You Must Not Know About Elasticities

​

7. Budget Lines & Indifference Curves

​

8. Consumer’s Optimal Choice

​

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QX

QY

0

0

Given

M, PX, PY

Budget line

PXQX + PYQY = M

- PX/PY

M

YPY

M/PX

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QX

QY

0

0

Indifference curves

MUY

- MUX

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QX

QY

0

0

Optimal choice

PY

- PX

MUY

- MUX

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Pizza

Pop

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Pizza

Pop

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Pizza

Pop

if price of pizza goes down

​

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Quantity of

pizza

Price of pizza

Demand

Pizza

Pop

if price of pizza goes down

​

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if price of pizza goes down

​

Pizza

Pop

Quantity of

pop

Price of pop

Demand

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1. Cost-Benefit Principle

​

2. Principle of Comparative Advantage

​

3. Supply-and-Demand Model

​

4. When Ceteris Is Not Paribus

​

5. Gov’t Intervention in S&D Model

​

6. You Must Not Know About Elasticities

​

7. Budget Lines & Indifference Curves

​

8. Consumer’s Optimal Choice

​

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COMING SOON: SPRING BREAK

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Author’s claims to this work and attribution for others’ work.

​

This work is the sole responsibility of the author and not any institution with which the author is affiliated.

​

Except for the copyrighted material listed below, this work is licensed under a CC Attribution-ShareAlike 4.0 International liscence (http://creativecommons.org/licenses/by-sa/4.0/). You are free to share and adapt this work for any purpose, but you must give appropriate credit, and you must share any adaptations under the same license.

​

The exceptions are as follows.

​

​

is “Price-Tag” (http://thenounproject.com/term/price-tag/18095/) �by Atelier Iceberg from the Noun Project, used under a CC BY 3.0 license.

The author makes no claims to the photos on slides 33 or 34.