2.2 herhalen + uitleg 2.3

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Program

Recap 2.2 + check homework

Explanation 2.2 + assignments

Lesson objectives

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

What was our last class about?

Turnover

Turnover (or Total Revenue) = sales quantity x selling price
 TR = P x Q

2000 products are sold for € 50
Sales = 2000 products
Total Revenue = € 50 x 200 = € 100.000

Total Profit

Total Revenue = Sales x Selling price
 TR = P x Q

Total profit = Total Revenue - Total Costs

TP = TR - TC

What's the difference between fixed and variable costs?

Total Costs (restaurant)

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 

Total costs

TC = 2Q + 100

2Q = variable costs, depend on Q (amount of products)
F.e.: costs per pizza are € 2

100 = fixed costs, you have to pay them anyway
F.e.: Loan and rent

What's the difference between a supply and demand curve?

Demand curve

Supply curve

Supply curve

Supply curve: shows the relationship between price and the quantity supplied

Example of a supply curve: 

Qs = 0,25P – 5

Qs = amount of products offered

P = price of the product in euro’s

• the supply curve will be upward sloping
• the number before p will be positive

CHECK HOMEWORK

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