G11 - Week 3 - Day 2

In-class work

1. Questions?
2. The Law of Supply and the Determinants of Supply
3. Why does Supply slope upwards? (The law of increasing opportunity cost and supply)
1. Skim pages 40-47
2. Complete exercise 17-21 (p. 42 & 47)
4. Linear Demand Equations - part 1 (HL Only)
5. Linear Demand Equations - part 2 (HL Only)
1. Exercises 11-16 (p. 40)
2. Read section 2.4 as needed
6. Linear Supply Equations - part 1 (HL Only)
7. Linear Demand Equations - part 2 (HL Only)
1. Exercises 22-27
2. Read section 2.7 as needed
8. Deriving Demand and Supply Equations from Data (HL Only)

---

From the blogosphere

1. The Future of Work
1. Analyze how the shifts in future work might be connected to scarcity of different resources.
2. Evaluate what the opportunity costs might be if education doesn't change and adapt to the technological progress happening.
3. How might some of these changes affect both supply and demand of future markets?
4. How do these questions relate to decisions about your future?
2. PPP Demystified

---

Currently Reading

The Road to Serfdom

"This is the fundamental fact on which the whole philosophy of individualism is based. It does not assume, as is often asserted, that man is egoistic or selfish or ought to be. It merely starts from the indisputable fact that the limits of our powers of imagination make it impossible to include in our scale of values more than a sector of the needs of the whole society, and that, since, strictly speaking, scales of value can exist only in individual minds, nothing but partial scales of values exist—scales which are inevitably different and often inconsistent with each other. From this the individualist concludes that the individuals should be allowed, within defined limits, to follow their own values and preferences rather than somebody else’s; that within these spheres the individual’s system of ends should be supreme and not subject to any dictation by others. It is this recognition of the individual as the ultimate judge of his ends, the belief that as far as possible his own views ought to govern his actions, that forms the essence of the individualist position." (Kindle Locations 2545-2552).

"This is precisely what the price system does under competition, and which no other system even promises to accomplish. It enables entrepreneurs, by watching the movement of comparatively few prices, as an engineer watches the hands of a few dials, to adjust their activities to those of their fellows. The important point here is that the price system will fulfill this function only if competition prevails, that is, if the individual producer has to adapt himself to price changes and cannot control them. The more complicated the whole, the more dependent we become on that division of knowledge between individuals whose separate efforts are coordinated by the impersonal mechanism for transmitting the relevant information known by us as the price system." (Kindle Locations 2385-2390).