1 / 11

January 22, 2014

January 22, 2014. Effect of Technology on Price. Example Textbook prices 1990 vs 2014 Secondary market Improved information in 2014  lower prices Buyback market 1990 person selling the book was essentially a price taker. Inflation.

erica-king
Download Presentation

January 22, 2014

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. January 22, 2014

  2. Effect of Technology on Price Example • Textbook prices 1990 vs 2014 • Secondary market • Improved information in 2014  lower prices • Buyback market • 1990 person selling the book was essentially a price taker

  3. Inflation • Average price of college attendance ↑ by 8% per year regardless of inflation rate

  4. Stagflation • High inflation + high unemployment + (no economic growth or economic contraction) • Implications for the purchase of non-necessary goods

  5. Demand Pull • Demand ↑↑↑ • Supply is constant • Ex. baseball playoff tickets • Effect on price?

  6. Elasticity • How a change in one variable results in a change in another • How responsive? • “If I lower the price of tickets, how many more will I sell?” • “If replica jerseys are scarce, will people want to buy them?”

  7. Supply Shift – Elastic Demand

  8. Supply Shift – Inelastic Demand

More Related