[ItalianFX]

[ QUOTE ]
hi bbv,

i have an allegedly difficult midterm on this topic tomorrow.

i would appreciate your thoughts on:

supply and demand
elasticity
aggregate demand curves
social surplus & dead weight loss
intertemporal consumption models
why i am not 'cramming' (LOL) for this with hot chicks

[/ QUOTE ]

Supply and Demand:

Demand is how much consumers are willing to buy. As price goes up, quantity demanded goes down - downward sloping.

Supply is how much producers are willing to sell. As price goes up, quantity supplied goes up - upward sloping

Equilibrium is where S = D, and you get equilibrium price and quantity. Analysis is performed based on demand or supply shocks and that is where you get changing prices and changing quantities.

Elasticity:

There are several forms, but the easiest is price elasticity of demand = % change in quantity demanded / $ change in price. Elasticity can get complex, so you may want to look into that on your own.

Aggregate demand curves:

sum total of all planned expenditures in the economy. These are close to other demand curves, but hold alot more in them based on your analysis.

Social Surplus & Dead Weight Loss:

Not sure what social surplus is, but it sounds like it could be related to consumer surplus.

Dead Weight Loss comes from monopolies where they try to maximize profits, but they restrict output.

Intertemporal Consumption Models:

This is based on when you decide what to do with your income, you can consume all now or save part for the future.
You have 2 time periods, 1 and 2. You have consumption, C1 and C2, Income M1 and M2 and interest r In Period 1, you can use your entire income for consumption C1. So your C1 = M1 + M2/(1+r). Or you can save all of your income until period 2 and have C2 = M2 + M1(1+r). The closer you are to C2, the more patient you are and the closer to C1, the more impatient.