Lecture

Demand & Supply: Understanding Economic Behavior

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ENG-410: Energy supply, economics and transition

This course examines energy systems from various angles: available resources, how they can be combined or substituted, their private and social costs, whether they can meet the energy demand, and how the transition to a renewable energy system can be foste ...

Description

This lecture covers the fundamental concepts of demand and supply in economics, focusing on individual and aggregate behaviors. Topics include marginal benefit/cost, willingness to pay, demand functions, market demand, elasticities, and estimating the demand for gasoline in Switzerland.

Instructors (4)

Philippe Thalmann

Philippe Thalmann was born in Lausanne in 1963. He graduated in Economics from the University of Lausanne in 1984, where he earned a postgraduate diploma in Economics in 1986. Mr. Thalmann entered the doctoral program in Economics of Harvard University (Cambridge, U.S.A.) in 1986, which he completed with a Ph.D. in 1990. His dissertation is entitled: "Essays in the Economics of Government Revenues and Spending". Returning to Switzerland, he was hired as an assistant professor first at the University of Geneva (teachings in Public Economics), then at the University of Lausanne (teachings in Econometrics and Introductory Economics). Since 1994, Mr. Thalmann is associate professor of Economics as the Swiss Federal Institute of Technology at Lausanne.

Claudia Rebeca Binder Signer

Claudia R. Binder, a Swiss, Canadian and Colombian citizen, was born in Montreal and spent most of her childhood in Switzerland and Colombia. She studied at ETH Zurich from 1985 to 1996, earning a degree in biochemistry and then a PhD in environmental sciences. After conducting her post-doctoral research at the University of Maryland in the US from 1996 to 1998, she returned to Switzerland and took a position as a senior research scientist at ETH Zurich, studying the interaction between human and environmental systems at the Institute for Natural and Social Science Interface. In 2006, Binder joined the University of Zurich as an assistant professor in the Department of Geography, and in 2009 moved to the University of Graz in Austria where she served as a full professor of systems science. In 2011, she took a position at the University of Munich’s Department of Geography as a full professor of human-environment relations. Binder joined EPFL in March 2016 and set up the Laboratory for Human-Environment Relations in Urban Systems (HERUS) at ENAC; she also holds the La Mobilière Chair on Urban Ecology and Sustainable Living. Her research involves analyzing, modelling and assessing the transition of urban systems towards sustainability. She looks in particular at how we can better understand the dynamics of urban metabolism, what characterizes a sustainable city, and what drives and hinders transformation processes. She does so by combining knowledge from social, natural and data science. Her research focuses on food, energy, and sustainable living and transport in urban systems. In Switzerland, Binder was appointed to the Research Council, Programs Division of the Swiss National Science Foundation (SNSF) in 2016 and serves on the Steering Committee of the SNSF’s National Research Program 71, “Managing Energy Consumption” and the Swiss Competence Centers for Energy Research (SCCER). She is also a member of the Steering Board on Sustainability Research for the Swiss Academies of Arts and Sciences. In 2019, she was elected as a member of the University Council of the University of Munich (LMU). At EPFL, Binder is the academic director of Design Together, a cross-disciplinary teaching initiative. She was appointed to the management team of the Energy Center in 2018 and as head of the working group on EPFL’s energy and sustainability strategy in 2019.

Official source

Ontological neighbourhood

Economics

Microeconomics: Supply and demand

Related concepts (32)

Demand

In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item is a function of an item's perceived necessity, price, perceived quality, convenience, available alternatives, purchasers' disposable income and tastes, and many other options. Innumerable factors and circumstances affect a consumer's willingness or to buy a good.

Cross elasticity of demand

In economics, the cross (or cross-price) elasticity of demand measures the effect of changes in the price of one good on the quantity demanded of another good. This reflects the fact that the quantity demanded of good is dependent on not only its own price (price elasticity of demand) but also the price of other "related" good. The cross elasticity of demand is calculated as the ratio between the percentage change of the quantity demanded for a good and the percentage change in the price of another good, ceteris paribus:The sign of the cross elasticity indicates the relationship between two goods.

Demand curve

In a demand schedule, a demand curve is a graph depicting the relationship between the price of a certain commodity (the y-axis) and the quantity of that commodity that is demanded at that price (the x-axis). Demand curves can be used either for the price-quantity relationship for an individual consumer (an individual demand curve), or for all consumers in a particular market (a market demand curve). It is generally assumed that demand curves slope down, as shown in the adjacent image.

Supply and demand

In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.

Price elasticity of demand

A good's price elasticity of demand (, PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others. The price elasticity gives the percentage change in quantity demanded when there is a one percent increase in price, holding everything else constant. If the elasticity is −2, that means a one percent price rise leads to a two percent decline in quantity demanded.

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Christophe Ballif

Christophe Ballif is director of the Phototovoltaics and Thin Film Electronics Laboratoryb) (PV-Lab at the institute of microengineering (IMT) in Neuchâtel (part of the EPFL since 2009). The lab focus is on the science and technology of high efficiency heterojunction crystalline cells,so-called passivating contacts for solar cells, multi-junction solar cells include novel generation Perovskite on innovative optical high speed detector and on various macroelectronics application. It also deals with energy management with a focus on integration of solar electricity into the energy system. The PV-Lab has strongly contributed to technology transfer and industrialization of novel devices and full technology with numerous companies. Christophe Ballif graduated as a physicist from the EPFL in 1994, where he also obtained in 1998 his Phd degree working on novel PV materials. He accomplished his postdoctoral research at NREL (Golden, US) on compound semiconductor solar cells (CIGS and CdTe). He worked then at the Fraunhofer ISE (Ge) on crystalline silicon photovoltaics (monocrystalline and multi-crystalline) until 2003 and then at the EMPA in Thun (CH) before becoming full professor at the University of Neuchâtel IMT in 2004, taking over the chair of Prof. A. Shah. Since 2013, C.Ballif is also the director of the new CSEM PV-Center, also located in Neuchâtel. The CSEM PV-Center is focussing more on industrialisation and technology transfer in the field of solar energy, including solar electricity management and storage. At the core of the CSEM PV-center activities lies several "pilot lines" for various kinds of solar cells manufacturing, with a focus coating technologies, wet chemistry processes for crystalline silicon, metalisation techniques for solar cells, and a platform for developing "ideal packaging solutions and polymers" for PV modules. In addition, joined facitilites between CSEM and EPFL of over 800 m2 are available for modules manufacturing, measuring and accelerated aging. CSEM PV-center has also full team dedicated to storage and energy systems and operates a joined center with BFH in Biel for research on electrochemical storage. He (co-) authored over 500 journal and technical papers, as well as several patents. He is an elected member of the SATW, member of the scientific council of the Swiss AEE, and member of the board of the EPFL Energy center. In 2016, he recieved the Becquerel prize for his contributions to the field of high efficiency photovoltaics.

Related concepts (32)

Demand

Cross elasticity of demand

Demand curve

Supply and demand

Price elasticity of demand