# 3E Economics par. 2.3

Par. 2.2 assignment 6a
Which statement is incorrect?
A
TR = 400 x 2
B
Sales = 400
C
TC = 140,22Q
D
TP = 1,78Q - 140
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Slide 1: Quizvraag
EconomieMiddelbare schoolvwoLeerjaar 3

In deze les zitten 19 slides, met interactieve quizzen en tekstslides. Lesduur is: 60 min

## Onderdelen in deze les

Par. 2.2 assignment 6a
Which statement is incorrect?
A
TR = 400 x 2
B
Sales = 400
C
TC = 140,22Q
D
TP = 1,78Q - 140

#### Slide 1 -Quizvraag

Par. 2.2 assignment 6b
Which statement is incorrect?
A
( 0,22 x 400 + 140 ) / 400
B
0,22 + 140 / 400
C
( 0,22 + 140 ) / 400

#### Slide 2 -Quizvraag

Par. 2.2 assignment 6c
The costs per product ...(1) when we produce more products, because the ...(2) can be divided over more products
A
1 decrease 2 fixed
B
1 decrease 2 variable
C
1 increase 2 fixed
D
1 increase 2 variable

#### Slide 3 -Quizvraag

Hw.
Assignment 2.2
a>
Turnover = 400 x 2 = 800

Total variable costs = 0,22 x 400 = 88
Total costs = 88 + 140 = 228
Profit = 800 - 228 = 572

#### Slide 4 -Tekstslide

Par. 2.2 Assignment e
A
TC = 0,22 + 140
B
TC = 0,22Q + 140
C
TC = 0,22 + 140Q
D
TC = 0,22Q + 140Q

Demand curve
Supply curve

#### Slide 6 -Tekstslide

Market equilibrium

#### Slide 7 -Tekstslide

Market
Demand curve and supply curve lead to a market equilibrium

Qs = Qd

1 > Solve the equation
2 > intersection point of the 2 lines

#### Slide 8 -Tekstslide

Market equilibrium
The intersection point where supply and demand are equal for a certain product (Qs = Qd)

#### Slide 9 -Tekstslide

Calculation
For the market of a certain product we have the following equations
Qd = - 2,4p + 1200 en Qs = 4p - 400

Qs = Qd
4p - 400 = - 2,4p + 1200
6,4p = 1600
P = 250

Equilibrium price = €250

#### Slide 10 -Tekstslide

Calculation
Now we now the equilibrium price ( €250) we can calculate the equilibrium quantity

Qd = - 2,4p + 1200 and Qs = 4p - 400

-2,4 x 250 + 1200 = 600

Equilibrium quantity = 600

Check: 4 x 250 - 400 = 600

#### Slide 11 -Tekstslide

Example
qd = -100p + 600
qs = 50p – 150

Equilibrium price?
Equilibrium quantity?

#### Slide 12 -Tekstslide

qs = qd
50p – 150 = -100p + 600 ----> 150p = 750 ---->  p = 5
qa = 50 x 5 – 150 = 100  and   qv = - 100 x 5 + 600 = 100

#### Slide 13 -Tekstslide

Qd = -10p + 80
Qs = 5p - 10
Equilibrium price?
A
4,67
B
6
C
14
D
18

Qd = -10p + 80
Qs = 5p - 10
Market turnover?
A
20
B
120
C
140
D
840

#### Slide 15 -Quizvraag

How can the equilibrium price change?

- shift of the supply curve
- shift of the demand curve

#### Slide 16 -Tekstslide

The invisible hand
The market mechanism will 'automatically' insure the market price to become the equilibrium price
Famous economist Adam Smith called this the invisible hand

At a demand excess the invisible hand will push the market price up until we reach a new equilibrium price
At a supply excess the invisible hand will push the market price down until we reach a new equilibrium price

#### Slide 17 -Tekstslide

How does a market respond to a shift of the demand curve to the left? Put the events in the right order.
Step 1
Step 2
Step 3
Step 4
A part of the supplied product is not sold.
The demanded quantity will increase, the supplied quantity will decrease.
The market will 'automatically' come to an equilibrium.
Suppliers that don't sell all their products will lower the price.

#### Slide 18 -Sleepvraag

Hw.
For next lesson:

Par. 2.3 assignments 6, 13 and 14