Thursday, 3 May 2007
Econs-related!
hahaz i was bored so started looking at fren's blogs...
omg one of them (Daryl Lim u rock man.) posted abt Econs!
hahaz kk im gonna repost it here :D
"So let’s use econs so describe things in this post shall we?
Hmm, let’s take the market of love, how bout it?
Ok, so love is a what good?
I think to most people, it is a highly inelastic good.
If you don’t agree, just tag.
So it is inelastic.
Hmm, then what about the supply?
I think the supply curve is very elastic.
For example, you like this girl.
You really like this girl.
So the demand is inelastic, because she becomes a necessity.
Your desire for her makes the demand curve inelastic.
But the supply, on her side(producer), is elastic.
She might have many admirers, so they are all very close substitutes.
At the same time, if you jio her, she can live with or without you, therefore, on the producer’s side(thegirl), the supply is elastic.
So presuming the girl is only willing to supply you with a limited amount of her attention, which means the quantity supplied is little.
So by drawing the graph, the equilibrium point, which determines the price, is very high up, making the price very high.
So now we get it, to jio a girl, you need lotsa $$.
Secondly, because the demand is highly inelastic, a slight change in quantity supplied would bring about a huge change in the price, so be warned, bring a fire extinguisher with you, to put out the fire before it burns too big a hole in your pocket.
Secondly, what type of market structure is the market of love?
Perfect competition? Monopolistic competition? Oligopoly? Or monopoly?
This one is for you to decide.It depends on the girl.
If the market structure is monopolistic, then good for you!
But what happens if it’s perfect competition?
Then i pity you bro, cos be it in the short run or long run, you can only reap normal profits.
So then the problem comes.
When are you gonna give up? (when do you have to shut down the buisness?) (shut down rule)
Ok, in the short run, it is when the total revenue(TR) is below the total variable cost(TVC).
But in the long run, your TR has to be above the TC!
Now, no wonder so many people give up and remain single."
btw he ponned Econs lect to post this. so yea...hahaz.
btw Tank is cool...like me:D
Lam, out.
MATH STILL SUX AS OF!__
22:19
