# Intermediate Microeconomics

## 1. Supply and Demand

The supply-demand model is generally the starting point for any economic analysis. The supply and demand curves represent the behavior of sellers and buyers, respectively, and the model allows us to examine how interactions between buyers and sellers determine prices and quantities. The supply-demand model can easily be augmented to examine the impact of public policies, such as price controls, quantity controls, taxes and subsidies, on market outcomes. In the Screencasts/Pencasts for this topic, we develop the supply-demand model, determine market equilibrium, examine "shocks" to the equilibrium (shifts in supply and/or demand), and how government interventions affect market outcomes.

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## BasicsThis Screencast discusses the basic idea behind the supply-demand model, including its simple yet powerful predictive power in many market settings. |

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## Key AssumptionsThis Screencast lists and discusses the key assumptions that are made in the context of the basic supply-demand model. |

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## DemandThis Screencast describes the law of demand, the difference in a movement along a given demand curve and a shift in the demand curve, and lists some key events/factors that shift demand curves. |

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## Changes in the Quantity Demanded versus Changes in DemandThis Pencast illustrates the difference between a change in quantity demanded and a change in demand. |

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## The Demand FunctionThis Pencast provides an example of an implicit and explicit form demand function and shows how to convert a demand function into an inverse demand function. |

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## Price and Changes in Quantity DemandedThis Pencast relies on the explicit demand function used in the previous Pencast to show how the quantity demanded of a good responds to a change in its price. |

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## Slope of the Demand CurveThis Pencast makes use of the inverse demand function derived in a previous Pencast to compute the slope of the demand curve. |

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## Income and Changes in Quantity DemandedThis Pencast shows how the quantity demanded of a good responds to a change income. Such an analysis can be used to determine if the good under consideration is a normal or inferior good. |

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## Prices of Related Goods and Changes in Quantity DemandedThis Pencast shows how the quantity demanded of a good responds to a change in the price of a related good. Such an analysis can be used to determine if the two goods are substitutes or complements. |

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## Summing Demand CurvesThis Pencast illustrates how to sum individual demand curves to arrive a demand function for the market. |

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## SupplyThis Screencast discusses the different shapes of supply curves, the difference in a movement along a given supply curve and a shift in the supply curve, and lists some key events/factors that shift supply curves. |

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## Changes in Quantity Supplied versus Changes in SupplyThis Pencast illustrates the difference between a change in quantity supplied and a change in supply. |

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## The Supply FunctionThis Pencast provides an example of an implicit and explicit form supply function and shows how to convert a supply function into an inverse supply function. |

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## Price and Changes in Quantity SuppliedThis Pencast relies on the explicit supply function used in the previous Pencast to show how the quantity supplied of a good responds to a change in its price. |

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## Slope of the Supply CurveThis Pencast makes use of the inverse supply function derived in a previous Pencast to compute the slope of the supply curve. |

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## Input Prices and Changes in Quantity SuppliedThis Pencast shows how the quantity supplied of a good responds to a change in the price of an input. |

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## Summing Supply CurvesThis Pencast illustrates how to sum individual supply curves to arrive a supply function for the market. |

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## Market EquilibriumThis Pencast illustrates how to compute the equilibrium price and quantity using the explicit-form supply and demand functions from previous Pencasts. |

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## Demand ShiftThis Pencast shows how to compute the new equilibrium price and quantity after a change in income. |

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## Allowing the Equilibrium Price and Quantity to Vary with IncomeThis Pencast shows how to allow the equilibrium price and quantity of a good to vary with income. Ultimately, one arrives at the same conclusion reached in the previous pencast. The only difference is that the approach used in this Pencast uses calculus, and the one in the previous Pencast solves for the new equilibrium using the new income. |

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## Supply ShiftThis Pencast shows how to compute the new equilibrium price and quantity after a change in the price of an input. |

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## Allowing the Equilibrium Price and Quantity to Vary with Input PricesThis Pencast shows how to allow the equilibrium price and quantity of a good to vary with the price of an input. Ultimately, one arrives at the same conclusion reached in the previous pencast. The only difference is that the approach used in the Pencast uses calculus, and the one in the previous Pencast resolves for the new equilibrium using the new price of the input. |

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## Simultaneous Shifts in Supply and DemandThis Pencast shows to compute the new equilibrium price and quantity after a simultaneous increase in income and the price of an input. |

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## Price Elasticity of DemandThis Pencast shows how to compute the price elasticity of demand. In addition, intuition on what the price elasticity of demand indicates is provided. |

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## Elasticity Along a Linear Demand CurveThis Pencast shows that the price elasticity of demand varies along a linear, downward-sloping demand curve. |

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## Constant Elasticity Demand CurvesThis Pencast shows that the price elasticity is constant when the demand curve is vertical or horizontal. In addition, we demonstrate that an exponetial demand function also has a constant price elasticity of demand. |

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## Other Demand ElasticitiesThis Pencast shows how to derive the income and cross-price elasticities of demand as well as providing examples of each. |

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## Price Elasticity of SupplyThis Pencast shows how to compute the price elasticity of supply. In addition, intuition on what the price elasticity of supply indicates is provided. |

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## Elasticity Along a Linear Supply CurveThis Pencast shows that the price elasticity of supply varies along a linear, upward-sloping supply curve. |

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## Constant Elasticity Supply CurvesThis Pencast shows that the price elasticity is constant when the supply curve is vertical or horizontal. In addition, we demonstrate that an exponetial supply function also has a constant price elasticity of supply. |

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## Price CeilingThis Pencast imposes a binding price ceiling using the demand and supply functions from previous Pencasts. The effects of the price ceiling are shown mathematically and graphically. |

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## Price FloorThis Pencast imposes a binding price floor using the demand and supply functions from previous Pencasts. The effects of the price floor are shown mathematically and graphically. |

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## Ban on Foreign ImportsThis Pencast illustrates how a ban on foreign imports affects market supply and the impact that such an intervention has on the market equilibrium. |

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## Quota on Foreign ImportsThis Pencast illustrates how a quota imposed on foreign imports affects market supply and the impact that such an intervention has on the market equilibrium. |

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## Per-Unit Tax Collected from SellersThis Pencast illustrates how a per-unit tax collected from sellers affects the market equilibrium. |

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## Per-Unit Tax Collected from BuyersThis Pencast illustrates how a per-unit tax collected from buyers affects the market equilibrium. |

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## Per-Unit Tax that Maximizes Tax Revenue: Part IThis Pencast discusses and illustrates the Laffer Curve, and shows the first step that is necessary for determining the per-unit tax that maximizes the tax revenue to be received by the government. The equations derived in this Pencast are used in the following Pencast |

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## Per-Unit Tax that Maximizes Tax Revenue: Part IIThis Pencast shows how to determine the per-unit tax that maximizes the tax revenue to be received by the government. The computation relies on information provided in the previous Pencast. |

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## Per-Unit Subsidy Paid to SellersThis Pencast demonstrates how a per-unit subsidy paid to sellers affects the market equilibrium. |

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## Per-Unit Subsidy Paid to BuyersThis Pencast demonstrates how a per-unit subsidy paid to buyers affects the market equilibrium. |

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## Tax Incidence and ElasticityThis Pencast shows that tax incidence, i.e. how a tax is distributed between buyers and sellers, depends specifically on the relative elasticities of supply and demand. |