Class summary 11/21

Double Coincedence of Want
• When two people have something that the other wants. Mutual want!
How is each side of market affected?
• Buyers
o List interested parties
o When prices are high,
• Quantity demand drops
• Sellers
o When price is high
• Sell more!
Quantity supply increases!
Whose plans are satisfied?
• There is no need to change plans
o Buyers
• AT THAT PRICE QS > QD = SURPLUS
• DOESN’T MATTER WHAT PRICE IS
o Sellers
Shortage: at that price, when quantity demanded is less than quantity of sellers
Price will rise to get rid of shortage
You don’t get to see demand curve, draw matrix
Be able to reverse engineer supply demand curve