review chapter 2

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Program

1. Recap previous class + discuss homework

2. Short explanation about 2.5 (1 slide)

3. Test update (overview topics and how to prepare)

4. Prepare for the test

5. Kahoot

Lesson goals

you are able to explain the different market situations (monopoly, oligopoly) 

You are able to explain what a cartel is and a price war

You are able to explain monopolistic competition and perfect competition

Oligopoly

• In a oligopolistic situation the different companies closely monitor each other
• They will react to price differences --> price war 
• Companies can as well agree to not compete with each other --> cartel
• Cartels are not allowed by the European Union
• Cartels remain secret!

Monopolistic competition

• Many providers
• Heterogeneous product (different quality, price, service, etc.)
• Bread(price, quality, service) or Dutch petrol (quality/service)

Perfect competition

• Many providers 



• Homogeneous product



• Leeks
• Price

Discuss homework 2.4

How to calculate the equilibrium wage and quantity?

Solve the equation Qd = Qs

Test update

The test is about chapter 2.1 up till including 2.4 and the previous slide about the labour market

How to prepare?

Read the theory in the book

Check the assignments

Complete the review/test yourself assignments

Test update - overview topics

2.1:

You are able to use a demand curve to calculate the price and quantity demanded.

You are able to explain how and when demand changes and when the quantity demanded changes.

Test update - overview topics

2.2:

You can explanain what the turnover and total costs are

You know the difference between fixed and variable costs

You know what is shown on a supply curve and how to draw such a curve

Test update - overview topics

Fixed costs - costs that are not dependant of the number of products produced.

F.e.: rent, insurance

Variable costs - Costs that do depend on the number of produced products.

F.e.: ingredients of the meals 

How to draw a supply curve?

Calculate the price when Qs = 0

Calculate Qs at a higher price than the answer of step 1.

Draw the vertical axis with the price and the horizontal axis with Qs.

Put 2 dots on the points you calculated at step 1 and 2 and draw the line. 

Test update - overview topics

2.3:

You are able to explain when an excess demand occurs

You can explain how the equilibrium price is determined

You can explain when an excess supply occures

Test update - overview topics

For the market of a certain product we have the following equations

Qd = - 2,4p + 1200 en Qs = 4p - 400

Qs = Qd

calculate the equilibrium price

Test update - overview topics

Situations can occur in which there is a excess demand

Quantity demanded > quantity supplied

OR

Quantity supplied > quantity demanded

Test update - overview topics

Calculate with change in percentages and expressing the part compared to the total

Change in percentage = (new - old) : old x 100%

Part of the total = part/total x 100%

Prepare for the test

The test is about chapter 2.1 up till including 2.4 and the previous slide about the labour market

How to prepare?

Read the theory in the book

Check the assignments

Complete the review/test yourself assignments

Kahoot

https://create.kahoot.it/creator/1c5f768d-effe-4694-939a-be06f1639f38