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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
1 / 19
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Slide 1:
Quizvraag
Economie
Middelbare school
vwo
Leerjaar 3
In deze les zitten
19 slides
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tekstslides
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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
Hw.
Par. 2.2 Assignment 6a
Turnover = 400 x 2 = 800
Total variable costs = 0,22 x 400 = 88
Total costs = 88 + 140 = 228
Profit = 800 - 228 = 572
Slide 2 - Tekstslide
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 3 - Quizvraag
Par. 2.2 assignment 6c
The costs per product ...(1) when we produce more products, because the ...(2) costs 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 4 - Quizvraag
Par. 2.2 Assignment 6e
A
TC = 0,22 + 140
B
TC = 0,22Q + 140
C
TC = 0,22 + 140Q
D
TC = 0,22Q + 140Q
Slide 5 - Quizvraag
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
qs = 50 x 5 – 150 = 100 and qd = - 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
Slide 14 - Quizvraag
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
Tasks:
Week 2: Par. 2.1 assignments 2, 3, 4, 5, 6, 7, 8, 9
Week 3: Par. 2.2 assignments 2, 3, 4, 5, 7, 8, 9, 10
Week 5: Par. 2.3 assignments 1, 3, 4, 7, 8, 9, 10, 11
and par. 2.6 assignments 7, 8
Slide 19 - Tekstslide
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