1. Clicker Check-in Survey: Do you own an Ipod? 1.Yes 2.No

2. A demander with Buyer Value $50 buys an object from a supplier with Seller Cost $20. The sum of the buyer’s and the seller’s profit is: 1. larger, the greater the price. 2. the same at all prices between $20 and $50. 3. smaller, the greater the price. 4.None of the above.

3. Why is that? Buyer’s profit=BV-Price Seller’s Profit =Price –SC Buyers Profit +Seller’s profit= (BV-Price)+(Price-SC)=BV-SC So sum of buyer’s and seller profit is BV-SC regardless of price.

4. And on to our main lecture…

5. If more fish are caught on Day 2 than on Day 1, then between Day 1 and Day 2, the supply curve 1.Shifts to the right. 2.Becomes flatter. 3.Becomes steeper. 4.Shifts to the left 5 Shifts vertically

6. Sunk costs are costs that do not change with the number of units sold. 1.True 2.False

7. If the price of gasoline doubles, but the number of fish caught stays the same, happens to the equilibrium price of fish? 1.It will go up, but not quite double. 2.It will stay the same. 3.It will exactly double.

8. And now back to our lecture…