* Supply-Demand
** Demand - Law of Demand
** Shock equilibrium
** Factors that influence supply-demand
** Taxes - applying to S-D
*** Solve tax problem

* Elasticity
** Demand
** Supply
** Income
** Cross-Price
** Know formulas for, meanings of
** Relationship of demand elasticity to revenue
*** R'(p)= q (1 - \abs{\epsilon}})

* Consumer behavior
** Budget constraint
*** goods, goods/leisure
** Preferences / utility
*** complements (Leontief)
*** perfect substitutes
** Optimization
*** Interior MRS = MRT
*** perfect complements/substitutes
** Income and substitution effects
*** Substitution effects always negative (opposite direction of price change)
*** Income effects can be in same or opposite direction
**** Leads to normal/inferior goods
** CPI: biases


* Taxes
** Specific taxes - change price of goods
*** Applied at seller: demand price = p, seller price = p-t 
**** p_d - p_s = t 
**** supply curve shifts upward by t
**** government revenue is t * q* = t * new equilibrium quantity
*** Applied at consumer: demand price = p+t, seller price = p
**** Less common

* Labor supply
** Leisure and consumption are two goods: budget constraint
*** x axis is leisure, intercept at 24,0
*** y axis is consumption, intercept at 0,24W/P
*** slope of budget constraint is -W/P
**** W = wage; P = price of consumption; L = leisure
** Utility function in terms of leisure and consumption
** Convert to leisure, solve for demand function, convert back to labor supply.