Economics class notes
選択できるのは25トピックまでです。 トピックは、先頭が英数字で、英数字とダッシュ('-')を使用した35文字以内のものにしてください。

feb26-elastic-supply.md 1.4KB

February 26 Notes

Elasticity of Supply

  • Inversely proportional to production cost
    • high production costs take longer to switch
  • Larger over time

Shifts in the Supply Curve

  • Happen when something other than price changes

Examples:

  • Cost of Inputs ie: labor
  • Changes in policies, taxes, regulations, subsidies
  • Number of firms
  • Technological advancements
  • Natural disasters
  • Change in the market ie: expectations

Short run vs. Long run, Fixed vs. Variable Inputs

  • Fixed input cannot be changed in the short run ie: infrastructure
  • Variable input can be changed quickly ie: resources bought
  • Short run is the period of time when at least one input is fixed
  • Long run is when all inputs become variable

Examples:

  • Fixed:

    • Building for a university
    • Cars for a taxi service
    • A new Ford factory
    • A new hydroelectric power plant
  • Variable:

    • Books for a Library
    • Sandwich meat for Jersey Mikes
    • Cooks at a restaurant

Inputs for a fast food restaurant:

  1. Multi Mixers - variable
  2. Insta-Mix - variable
  3. Building - fixed
  4. beef patties - variable
  5. potatoes for french fries - variable
  6. Foot lettuce - variable
  7. electricity - variable
  8. labor power - variable
  9. Freezer room - fixed
  10. Security system - fixed
  11. toppings for burgers - variable
  12. Forks & Knives - Variable
  13. Soda - Variable
  14. Tables, Chairs - Fixed
  15. Location - Fixed