1 / 76

Students and Shortages

Students and Shortages. By Cliff Nelson December 2015. Two Areas of Focus. 1) Students. Teaching techniques and tips to more effectively teach students. 2) Shortages. Economic principles that illuminate the economics that we teach as well as phenomena we observe in our daily lives. Students.

holbrook
Download Presentation

Students and Shortages

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. Students and Shortages By Cliff Nelson December 2015

  2. Two Areas of Focus 1) Students. Teaching techniques and tips to more effectively teach students. 2) Shortages. Economic principles that illuminate the economics that we teach as well as phenomena we observe in our daily lives.

  3. Students A minor deduction of points can carry much weight.

  4. Students A minor deduction of points can carry much weight. On my tests: “Deduction for work done in pen or for work that is hard to follow:_______ (up to 2 points)”

  5. Phrases • Zero behind is undefined. 8/0 = undefined.

  6. Phrases • Zero behind is undefined. 8/0 = undefined. • Hop the line, flip the sign.

  7. Phrases • Zero behind is undefined. 8/0 = undefined. • Hop the line, flip the sign. • Add to y, go high. Add to x, go west.

  8. Phrases • Zero behind is undefined. 8/0 = undefined. • Hop the line, flip the sign. • Add to y, go high. Add to x, go west. • OAOAHH HHAOAO

  9. The Skeleton of a Function The skeleton of is .

  10. The Skeleton of a Function The skeleton of is . Example:

  11. The Skeleton of a Function The skeleton of is . Example: Example: Given

  12. Assigning Problems • Assign problems ending in 1,5, or 9. • Example: 1-31(1,5,9) means 1,5,9,11,15,19,21,25,29,31.

  13. Efficient Grading • Most problems are worth 2 points. • -1 point for a minor mistake. • -2 points for a major mistake or for more than one minor mistake. • Longer problems can be broken down into components worth 2 points each.

  14. Rational Expressions Creation Formula

  15. Rational Expressions Creation Formula • Step 1: Pick any numbers for p, q, r, and b. • Step 2: Simplify the formula a=[(q-p)/(r-q)]b • Step 3: Plug in the values of the variables into the left side of the equation at the top.

  16. Rational Expression Example Pick p = 5, q = -1, and r = 8.

  17. Rational Expression Example Pick p = 5, q = -1, and r = 8. Pick b = 3. Then a = -2.

  18. Rational Expression Example Pick p = 5, q = -1, and r = 8. Pick b = 3. Then a = -2.

  19. Rational Expression Example Pick p = 5, q = -1, and r = 8. Pick b = 3. Then a = -2.

  20. Demand Function (in millions of units): Shortages • Supply Function (in millions of units): p = price per unit Q = quantity in millions

  21. Demand Function (in millions of units): Shortages • Supply Function (in millions of units): p = price per unit Q = quantity in millions Q p

  22. Equilibrium Point: (4,6)

  23. Equilibrium Point: (4,6) At $4 per unit, 6 million units will be both supplied and demanded.

  24. Equilibrium Point: (4,6) Q (4,6) 6 p 4

  25. Economics Classes:

  26. Economics Classes: p Q

  27. Economics Classes: p 4 Q 6

  28. Which Variable is Dependent?

  29. Which Variable is Dependent? • Quantity depends on price but price also depends on quantity.

  30. Which Variable is Dependent? • Quantity depends on price but price also depends on quantity. • The more scarce the material, the higher the price (e.g. gold versus iron ore)

  31. Why Do Markets Gravitate toward the Equilibrium Point?

  32. Why Do Markets Gravitate toward the Equilibrium Point? • If the price is higher, a surplus will result.

  33. Why Do Markets Gravitate toward the Equilibrium Point? • If the price is higher, a surplus will result. • If the price is lower, a shortage will result.

  34. Why Do Markets Gravitate toward the Equilibrium Point? • If the price is higher, a surplus will result. • If the price is lower, a shortage will result. • Market participants, pursuing their own self-interest, will naturally bring supply and demand into equilibrium.

  35. Suppose the price is at $5 per unit.

  36. Suppose the price is at $5 per unit. p Supply: Surplus: 7.5 – 4 = 3.5 5 4 Demand: Q 4 6 7.5

  37. Suppose the price is at $5 per unit. 7.5 million units will be supplied but only 4 million units will be demanded. This results in a 3.5 million unit surplus. p Supply: Surplus: 7.5 – 4 = 3.5 5 4 Demand: Q 4 6 7.5

  38. Suppose the price is at $3 per unit.

  39. Suppose the price is at $3 per unit. p Supply: 4 Demand: 3 Shortage: 3.5 Q 4.5 6 8

  40. Suppose the price is at $3 per unit. 8 million units will be demanded but only 4.5 million units will be supplied. This results in a 3.5 million unit shortage. p Supply: 4 Demand: 3 Shortage: 3.5 Q 4.5 6 8

  41. Market Forces • Surpluses result in suppliers having excess inventory. They will cut the price in order to clear their inventory.

  42. Market Forces • Surpluses result in suppliers having excess inventory. They will cut the price in order to clear their inventory. • Shortages result in buyers bidding up the price. Also suppliers, knowing that they will clear all their inventory at a higher price, raise the price in order to get more profit.

  43. Can Shortages and Surpluses Persist?

  44. Can Shortages and Surpluses Persist? • When market participants are free to act, they will naturally move the market to equilibrium.

  45. Can Shortages and Surpluses Persist? • When market participants are free to act, they will naturally move the market to equilibrium. • Only when an external coercive force constrains the participants can shortages and surpluses persist.

  46. Can Shortages and Surpluses Persist? • When market participants are free to act, they will naturally move the market to equilibrium. • Only when an external coercive force constrains the participants can shortages and surpluses persist. • The only entity in human society with this effective coercive power is ___________.

  47. Can Shortages and Surpluses Persist? • When market participants are free to act, they will naturally move the market to equilibrium. • Only when an external coercive force constrains the participants can shortages and surpluses persist. • The only entity in human society with this effective coercive power is the government.

  48. Price Controls • Price ceilings mandate that the price cannot rise above a certain level. • Price floors mandate that the price cannot fall below a certain level.

  49. Price Controls • Price ceilings mandate that the price cannot rise above a certain level. • If thatprice is lower than the equilibrium price, the result is a shortage. p Supply: 4 Demand: 3 Shortage: 3.5 Q 4.5 6 8

More Related