Economics class notes
You can not select more than 25 topics Topics must start with a letter or number, can include dashes ('-') and can be up to 35 characters long.

feb26-elastic-supply.md 1.4KB

1 year ago
1 year ago
1 year ago
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152535455565758
  1. # February 26 Notes
  2. ## Elasticity of Supply
  3. - Inversely proportional to production cost
  4. - high production costs take longer to switch
  5. - Larger over time
  6. ## Shifts in the Supply Curve
  7. - Happen when something other than price changes
  8. ### Examples:
  9. - Cost of Inputs ie: labor
  10. - Changes in policies, taxes, regulations, subsidies
  11. - Number of firms
  12. - Technological advancements
  13. - Natural disasters
  14. - Change in the market ie: expectations
  15. ## Short run vs. Long run, Fixed vs. Variable Inputs
  16. - Fixed input cannot be changed in the short run ie: infrastructure
  17. - Variable input can be changed quickly ie: resources bought
  18. - Short run is the period of time when at least one input is fixed
  19. - Long run is when all inputs become variable
  20. ### Examples:
  21. - Fixed:
  22. - Building for a university
  23. - Cars for a taxi service
  24. - A new Ford factory
  25. - A new hydroelectric power plant
  26. - Variable:
  27. - Books for a Library
  28. - Sandwich meat for Jersey Mikes
  29. - Cooks at a restaurant
  30. ### Inputs for a fast food restaurant:
  31. 1. Multi Mixers - variable
  32. 2. Insta-Mix - variable
  33. 3. Building - fixed
  34. 4. beef patties - variable
  35. 5. potatoes for french fries - variable
  36. 6. Foot lettuce - variable
  37. 7. electricity - variable
  38. 8. labor power - variable
  39. 9. Freezer room - fixed
  40. 10. Security system - fixed
  41. 11. toppings for burgers - variable
  42. 12. Forks & Knives - Variable
  43. 13. Soda - Variable
  44. 14. Tables, Chairs - Fixed
  45. 15. Location - Fixed