What are "Middle of the Night Thoughts"? These are the thoughts that automatically run through your mind when you happen to wake up in the middle of the night (for some biological or any other reason).
These "Econ Gotta-knows" seem to float through your consciousness thus reinforcing your ever-growing understanding of all that is Econ!
Demand Determinants:
- Change in Income
- Change in number of buyers (population)
- Styles, Tastes, Habits
- Price & Availability of Substitutes
- Price & Availability of Complements
- Change in Expectations (ex. future price/availability of product and future income)
Supply Determinants:
- Change in Resource Prices
- Change in Technology
- Change in Number of Suppliers
- Changes in Taxes & Subsidies
- Change in Prices of Other Goods
(ex. soccer ball producer switching to basketballs b/c of higher selling price of basketballs or yoyos & pogos)- Change in Expectations of Future Price of Product
Total Revenue Test (new one which will enter your consciousness in late September)
- If Price rises and Total Revenue rises, or Price falls and Total Revenue falls,
(Direct Relationship) Demand is Inelastic
- If Price rises and Total Revenue falls, or Price falls and Total Revenue rises,
(Indirect Relationship) Demand is Elastic
visitors since 9/16/2002