MACRO ECON

A GREATER QUANTITY IS SUPPLIED AT HIGHER PRICES

A CHANGE IN THE MARKET PRICE THAT SIMPLY INCREASES OR DECREASES THE QUANTITY SUPPLIED/DEMANDED

CHANGE IN ONE OF THE INDEPENDENT VARIABLES OTHER TAN PRICE EX. INCOME

VALUE OF ITEM IS THE SAME TO ALL BIDDERS. bUT THE BIDDERS SON;T KNOW THE VALUE OF THE ITEM. EX. OIL LEASE

BIDDERS BID A GREATER AMOUNT THAN THE PREVIOUS HIGH BID, AND THE BIDDER THAT FIRST OFFERS THE HIGHEST BID, WINS THE ITEM.

ALL BIDDERS SUBMIT THIER PRIVATE BIDS. THE BIDDER WHO SUBMITTED THE HIGHEST BID, WINS.

THE BIDDER WHO SUBMITTED THE HIGHEST BID, WINS. HOWEVER, HE PAYS THE SECOND HIGHEST BID.

BEGINS WITH HIGHEST PRICE AND THE PRICE IS REDUCED UNTILL A BIDDER IS WILLING TO PAY FOR IT. SOMETIMES, YOU CAN SAY THE QUANTITY YOU WILL BE PURCHASING EX. US TREASURY

1. PRICE CONTROLS 2. TAXES AND TRADE RESTRICTIONS 3. EXTERNAL COSTS 4.EXTERNAL BENEFITS 5, PUBLIC GOODS AND COMMON RESOURCES

PRICE CEILINGS AND PRICE FLORS

TAXES INCREASE THE PRICE THAT BUYERS PAY AND DECREASE THE AMT THAT SELLERS RECEIVE. QUOTAS ARE GOV-IMPOSED PRODUCTIONS LIMITS -LESS THAN EFFICIENT QUANTITY OF THE GOOD

EX. COST IMPOSED ON FISHERMEN BY A FIRM THAT POLLUTES THE OCEAN AS PART OF ITS PRODUCTION PROCESS.

TROPICAL GARDEN ON THE GROUNDS OF AN INDUSTRIAL COMPLEX.