1. We spent a lot of time deriving the supply and demand curves for a given market, largely following the neo-classical rendering.
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3. a) Briefly restate how a market equilibrium is generated (how the demand and supply curves are derived and why a market may tend to hover at the intersection of the two curves).
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5. b) Do you feel that theory works for commodities markets in general (i.e. that it is a good enough representation to allow useful analysis)? What about labor markets? Is there any difference between labor and commodities that would make the theory a better representation in one case than the other?

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Question one A market equilibrium is generated when the demand and supply curves intersect This inte... View the full answer