Elasticity (November 9th, 2011)

Elasticity is the slope of demand. What impacts elasticity is:

1. Time
2. Budget
3. Substitution

Some people will still buy to the same amount at a higher price because there might not be a substitution for it.
Law of Demand says that over the entire range of prices, it works.
This is a too high price eventually.
Who are all the interested parties? People or businesses.
then why don't we produce changes in the large amounts? Well, because they know that some people will stop. Which has a higher elasticity?

From Minivan to the Red Form Minivan, there are more substitutes. The more narrow the product, the substitutes increases. Demand elasticity in the highest because there are more substitutes.
|n| < 1 is inelastic, people are not sensitive to price.
|n| = 1 unit elastic
|n| > 1 elastic peopel are sensitive to price

Total recipients= P x Q:
if P goes up, Q goes down and vise versa.

In the situation where A has $500 dollars and B has $320 dollars, the consumers are elastic because they are sensitive to price. Expenditures are not the same as costs.

From Individuals to Market Demand (November 7th, 2011)

Horizontal submation of total quantity demand. They will be more "elastic" when they are bought together. Change from macro demand to aggro-demand when asking the public.

Comparative Statics
Quality demand and what things impact how much we buy?

• Prices of the good in question
• "Other Stuff"

Anytime it depends on the changes, it will be the changes in demand, not changing in the quantity demand.
Changes the way people think about prices:
[Ability]

1. Income
2. Prices of Other Things

[Willingness]

1. Expectations
2. Taste Might Change
3. Number of Participants

Demands can shift in and out depends on if the demand increases or decreased and whether or not he is willing to get more of the burritos for a certain amount.

Normal Goods
When income increases, quality demand increases.
"Inferior" then quantity demand will fall. Prefrences are subjective. More of the things you like.
Substitutions (Replacement):
When the price of substitution good increases, price of burritos increases.
There is no natural paring of goods. We only substitute when viewed on the relationship of the two.
Complements (Go together):
Prices of hot sauce goes up, the decrease in consumption of burritos because f the relationship. Goods are tied together.

• Tastes and how you view things will impact the demand curves.
• If a storm occurs, the expectations is that since everyone will be getting wood and such, you may respond today to buy it.
• Expectations of the prices of substitutes may have also changed.

Elasticity: How much more!

• Demand for pencils are inelastic.
• Demand for euro vacations are elastic.
• We can measure elasticity with anything. We can also discuss elasticity through that.

Own Price Elasticity of Demand:
(% Change in Quantity Demand)/ % (Change in Price of Burritos)

EWOT: Rebuilding Pyramids, Mount Rushmore, The Colosseum (November 4th, 2011)

As I was walking, I started to think about the Roman Colosseum and how it a very strong structure although made by simple things such as rocks and other types of solids that were easily or creatively discovered in the past. I was thinking again about how much of a landmark it is now and how it would be rude for the present time to modernize the Colosseum. But how will that effect the general public and for that matter the economy? Well first society would obviously be angered that national landmarks are being taken down from historical times to be renovated, yet it is only to help preserve it. More so, if it were to be renovated, the economy would probably benefit from it because the attraction of tourist will not only pay for the amount used in viewing the monuments but pay others for visiting it over again with the family. It will not only update what looks like bad location where plays were demonstrated in Italy to a nice and stronger landmark that will have no possibility of decaying throughout time and diminishing from it's strong concrete structure to a pile of rubble.

Demand (November 4th, 2011)

What can be obtained from the simple chart?
Marginal values
Total Expenditures
Total Value
Buyers Net Gains which counts as the consumer surplus.

Why do we have to behave this way?
Wealth Effects
Substitution Availability
Diminishing Marginal Utility

When burritos are zero, they would be used for other ideas. You would get less of a trade off if you play baseball with a burrito.
Better to the environment to feed it to your dogs

Markets force you to consider the values of everyone else. Demand curves never go up, they act as peaks at a slope downward. Price comes at some determination and behavior of the curve.

Wealth Effects, as price goes up, you become poorer.
Less income on anything else. Increasing everything will be worst for the poor since they have no money.

Substitution Availability is buying coal or oil is bad since they increase prices. Now they will increase in your incentives for that. The prices for traffic cops since they take an advantage on our choices.

Diminishing marginal Utility
Each unit that you purchase will give you less satisfaction. I wouldn't be paying enough to get the 5th slice of pizza. You would have to go out of your way to get that type of luxury that is unneeded.

POW Camp ( November 4th, 2011 )

The article discussed how the economies are starting by selling products like cigarettes and small goods in order to make a transaction at the POW camps. Goods were being traded but there was no amount for that money to be accounted for. It was based on products and what others viewed with as their value of it.The development of the economy was very different from other emerging economies. Since there were normal markets that had developed around the use of money, it was not as necessary in order to become a strong economy. The example was used in the POW camps to explain how there were small materials used in a market economy and build a economy all around it.

The Middleman and Demand (November 2nd, 2011)

The middle man that has a comparative advantage over something. Unique ability to bring buyers and sellers together. Wegmans is the middleman. Wegmans is going on their transactions a lot less and cheaper. They bridge the people together. Exchanges of porperty rights to things.

Demand
Exchange can occur in small groups and specific information have at that place and time.
Where does price come from? Price is information. Signals to buyers and sellers to what is scarce. This is what society values.

Markets are any group of buyers and sellers. There is also potential. Any decentralized, unorganized interaction between buyers and sellers. When you have a market, there is a production of money prices and non money prices that produce order. Order just means that stuff is on the shelves. The 2006 football crisis and it did not happen because of order.

Free health care is not free. In the United Kingdom, the 85% have to wait 3 months but for us we don't, we have 0%.

Buyers have "demanders" who have goods as households. They factor firms. Well the seller are the goods of the firms, and the factor is the households.

Demand is a relationship of the amount you wish to obtain and the sacrifices you make to get there. The quantitative demand is the amount of the good that buyers are willing to be able to consume at a particular price.

Trade Offs and the Trasactional Cost ( October 31st, 2011 )

There is a lot of people out there that can deliver that good and there is a lot of people that can have that good.

This is placed on trade offs and the bases that others have items or a use that can be viewed beneficial to others through subjective thoughts or opinions.

This is also based on the kidneys idea from Recitation. If the trade off can also value that of organs for others to use to survive at a longer time, would it be acceptable to trade a kidney for something of that of the same value.

People work for others to get their needs. For example, if others are willing to spend money on something of that of the predicted value, there is a profit that must be gained from the buyer and the seller, which is in between or bias. That is what a transnational cost does to the economy, in which it benefits the price of items sold.