Download presentation

Presentation is loading. Please wait.

Published byJoseph Yule Modified over 3 years ago

1
Microeconomics: The Price System at Work by: Chanon Amphan, Joel Fonseca, Ezekiel Knowlin, and Joshua Pope UNIT 2 CHAPTER 6 SECTION 2

2
Slide 1 Main- How changes in deman and supply cause prices to change. Key Terms- Economic Model, Market Equilibrium, Surplus, Shortage, and Equilibrium

3
Slide 2 Economic Model-set of assumptions that can be listed in a table, illustrated with a graph, or even stated algebraically to help analyze behavior and predict outcomes Market Equilibrium-situation in which quantity demanded is equal to the supply

4
Slide 3 Surplus - have extra product after selling Shortage - don't have enough product Equilibrium Price - price at which market equilibrium is achieved

5
Slide 4 Economists use market models to help predict and explain market prices. Changes in price are almost always caused by a change in demand, supply, or both. Economists and/or producers can set up supply-demand curves to help anticipate unpredictable events and to help account for elasticity

6
Slide 5 Theory of Competitive Pricing-describes ideal conditions of an ideal competitive economic system for the purpose of comparing real-world non-ideal systems -Producers naturally vie for consumer attention with lowered prices and advertising -Market is ideally completely self-sufficient because of natural tendencies of producers and consumers

7
Question 1 What is an economic model?

8
Answer 1 It is a set of assumptions that can be listed in a table, illustrated with a graph, or even stated algebraically to help analyze behavior and predict outcomes

9
Question 2 The adjustment process in a competitive market moves toward ________.

10
Answer 2 market equilibrium

11
Question 3 What is a shortage?

12
Answer 3 A shortage is a situation in which the quantity demanded is greater than the quantity supplied at one price.

13
Question 4 True/False A situation without surplus or shortage means equilibrium has been reached.

14
Answer 4 True

15
Question 5 True/False Economists use market models to help predict and explain prices.

16
Answer 5 True

Similar presentations

OK

Economics 202 Principles Of Macroeconomics Lecture 4: Review of Equilibrium Market Equilibrium Examples.

Economics 202 Principles Of Macroeconomics Lecture 4: Review of Equilibrium Market Equilibrium Examples.

© 2017 SlidePlayer.com Inc.

All rights reserved.

Ads by Google

Ppt on power system harmonics calculation Ppt on main bodies of unobtrusive Ppt on javascript events tutorial Ppt on social media analytics Ppt on game theory five nights Ppt on earth day 2013 Ppt on natural resources conservation Ppt on earth damaged Ppt on smoking is injurious to health Ppt on grasslands of the world