I walked to class with Andrew after a light breakfast at V-Dub. I have yet to try the homemade waffles. Class started off rolling today. We assigned our official groups for our projects. Andrew, Jose, and I are researching the budget deficit in California. Andrew and I are being true California ambassadors. Jose is from New Jersey, but he is okay with researching whatever we picked.
Today, Professor Coleman discussed competitive markets and we started graphing supply and demand situations. I am really starting to enjoy this class because the information we are absorbing is finally starting to click into comprehension. We also talked about complements and substitutes and my professor brought up my favorite quote of the day:
“We’re not arguing about Coke and Pepsi. Which are different... apparently.”
Supply and demand are actually very complicated. We discussed how much of a good or service would be supplied at different prices. We graphed supply and demand on a graph. When the lines intersect, that is known as equilibrium. Equilibrium in a competitive market (not the equilibrium in my previous blog) is when the quantity of a supplied and demanded good is equal.
We took a survey in class to see how much people would pay for an iPad. A Russian student started us off at $1000. I voted for $400. Since the actual price of an iPad is $500 that would be the equilibrium price. Anything between $500 and $1000 would be a consumer surplus. Basically, the Russian guy that would buy an iPad for $1000 but only paid $500 would in theory get $500 in surplus. Get it? It took a while for me to understand that, but it was actually quite simple.
Macroeconomics is a really fast paced. We’re taking a 9-week course in a 3-week period. The work is rigorous. I’m about to head over to Andrew’s dorm to work up on the group project.
I met a lot of design students at V-Dub for lunch and they’re going to teach me some of the stuff they are working on. They showed me all their ideas for business cards (which was their homework). When I got out of V-Dub, it was raining. Scratch that, it was pouring. I had an umbrella but I still managed to get soaked to my socks. I am blogging in my pajamas right now while my shoes are drying out by my window. The rain has let up, so I’m headed to the Bronson Dorm to meet with Andrew and Jose.
“Freakonomics” is playing at Salomon Hall tonight. I can’t wait to understand all the economics lingo in the documentary. I also signed up for a tour at the Rhode Island School of Design which is Friday. Until then, stay dry.