Clicker Check Question: Have you taken a calculus course?

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Clicker Check Question Have you taken a calculus
course?

1. Never.
2. In high school but not college.
3. I am taking my first calculus course this term.
4. I have completed a college calculus course.

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The demand curve is given by P100-Q and the
supply curve by P204Q. The competitive
equilibrium Quantity is

1. Q80
2. Q44
3. Q28
4. Q20
5. Q16

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Solving for Equilibrium Quantity

• Demand Curve P100-Q
• Supply Curve P204Q
• Two equations in two unknowns.
• Supply curve crosses demand curve where
• 100-Q204Q.
• This happens where 805Q or Q16

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The demand curve is given by P100-Q and the
supply curve by P204Q. The competitive
equilibrium Price is

1. P84
2. P80
3. P64
4. P24
5. P20

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Solve for Equilibrium Price

• We found that Q16.
• We know from demand equation that P100-Q.
• So P84

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And on to our main lecture

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The price of a good rises and so does the
quantity sold. These observations are consistent
with

1. An upward shift of the supply curve.
2. A downward shift of the supply curve.
3. An upward shift of the demand curve.
4. A downward shift of the demand curve.

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With upward sloping supply, if Demand Curve
shifts up, Price and Quantity both rise.
Price
Demand curve shifts up
New Equilibrium
Old Equilibrium
Quantity
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If the supply curve shifts upwards, we expect

1. Price and quantity both rise.
2. Price rises, quantity falls.
3. Price and quantity both fall.
4. Price falls, quantity rises.

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Here is the picture.
Price
Supply curve shifts up.
New equilibrium
Old equilibrium
Quantity
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And now back to our lecture