praxeology through price theory, lecture 4 with robert murphy - mises academy
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Mises AcademyAustrian Econ I:
Praxeology Through Price Theory
Robert P. MurphySpring 2011
Lecture 4May 18
2nd half Chapter 21. Schedules�CurvesII. Law of Supply/DemandIII. ElasticityIV. SpeculationV. Total Demand to Hold
VI. Time to Change VII. Demand vs. Quantity Demanded VIII. Producing the Stock IX. Rothbard on Property
I. Supply/Demand Schedule�
� Supply/Demand Curves
� Generic Supply/Demand Curves
II. Laws of Supply/Demand
As price increases, the quantity supplied will either increase or stay the same.
As price decreases, the quantity demanded will either increase or stay the same.
III. Elasticity
● If demand is elastic (in a certain range of prices), then lowering the price will lead to consumers spending more total money on the good.
● If demand is inelastic, then lowering the price will lead to less total money spent on the good.
IV. Speculation
V. Total Demand to Hold
TOTAL DEMAND TO HOLD =
EXCHANGE DEMAND (I.E. NORMAL DEMAND) +
RESERVATION DEMAND (I.E. AMOUNT SELLERS WITHHOLD FROM THE MARKET)
A. Regular Supply/Demand�
B. � Total Stock/Demand to Hold
C. Total Stock/Demand to Hold
VI. Now It’s Time to Change…
VII. Demand vs. Quantity demanded
VIII. Producing the Stock
IX. Rothbard on Property