BEL business econ notes

Last july - 147/bbl peak and goldman sachs predicted $200 soon! 

on 1/20/09 - $38.74 per barrel!!! 

what drove prices up? - speculation /expectation

what drove them down? - 

Market demand

1. D is quantity of good aquired by consumers in period of time depending on price and other factors
   
2. text indicates direct D and derived D 
   
3. Distinction based on whether consumer value (utility) is directly served not:
   

• direct D would be from immediate consumption of a good 
• Derived D can be by firms (inputs to some other outputs that generate value)
• Derived D - can be for consumer products - gasoline or autos?

Aplia Answers

1.1) i put 5 as the quantity
1.2) the firm must lower its selling price (not srure about this one, because of the thing about the monopoly, which was maybe make it be the one about produce more, sell more. )
1.3) True- price equals the average revenue
2) MR= change in TR over change in Q
3) False
4) D = both B and C (either this or just B, but pretty sure its both)
5) true (not totally sure)
6) $5, $3, $2
7) Q= 4