Demand, supply, and Market equilibrium

Slides:

Advertisements

Similar presentations

Copyright © 2001 by Houghton Mifflin Company. All rights reserved. 1 Economics THIRD EDITION By John B. Taylor Stanford University.

Advertisements

PART TWO Price, Quantity, and Efficiency

Ch. 3: Supply and Demand: Theory

SUPPLY AND DEMAND I: HOW MARKETS WORK. Copyright © 2004 South-Western The Market Forces of Supply and Demand.

Chapter 4 Demand, Supply, and Markets © 2009 South-Western/Cengage Learning.

1 © 2010 South-Western, a part of Cengage Learning Chapter 3 Market Demand and Supply Microeconomics for Today Irvin B. Tucker.

Chapter 7 Supply & Demand

Demand. Quantity of a product that buyers are willing and able to purchase at any and all prices Consumers are interested in receiving the most satisfaction.

Chapter 3 Demand and Supply Huanren (Warren) Zhang.

Chapter 3 Supply and Demand: In Introduction. Basic Economic Questions to Answer What: variety and quantity How: technology For whom: distribution.

Chapter 2: Demand, Supply, and Market Equilibrium McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 4 Demand and Supply. The Market can be a location, network of buyers and sellers for a product, demand for a product or a price-determination.

3 - 1 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium.

Chapter 3 Review Supply & Demand. What is a market: -an institution that brings together buyers and sellers.

5.1 – An Economic Application: Consumer Surplus and Producer Surplus.

Demand, Supply, and Market Equilibrium Chapter 3 Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Chapter 4Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved 1 ECON Designed by Amy McGuire, B-books, Ltd. McEachern.

10/15/ Demand, Supply, and Market Equilibrium Chapter 3.

Individual Markets: Demand & Supply 3 C H A P T E R.

Demand, Supply, and Market Equilibrium 3 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 3: Individual Markets: Demand & Supply

AAEC 2305 Fundamentals of Ag Economics Chapter 5 Theory of Markets.

PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University The Market Forces of Supply and Demand 1 © 2011 Cengage Learning. All Rights.

Supply and Demand: How Markets Work Supply and Demand: How Markets Work.

Chapter The Market Forces of Supply and Demand 4.

Chapter 4Copyright ©2010 by South-Western, a division of Cengage Learning. All rights reserved ECON Designed by Amy McGuire, B-books, Ltd. McEachern 2010-

Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Individual Markets: Demand.

# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Demand, Supply, and Market Equilibrium 3.

Economics Unit 4 Supply. Supply refers to the various quantities of a good or service that producers are willing to sell at all possible market prices.

Economics, Standard E.1.5. By Jay Knoblock. Quantity Demanded Quantity Demanded: How much consumers will buy at one price. On a supply and demand graph,

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Lecture 3 [Chapter 3]

Demand and Supply Chapter 3. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE to BUY at each specific.

2 SUPPLY AND DEMAND I: HOW MARKETS WORK Copyright © 2004 South-Western A Market Economy Consumer: a person who buys and uses goods and services Producer:

SUPPLY & DEMAND Three functions of price A. Determines value B. Communicates between buyers and sellers C. Rationing device.

Demand and Supply Krugman Section Modules 5-7. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE.

SUPPLY & DEMAND. Demand  Demand is the combination of desire, willingness and ability to buy a product. It is how much consumers are willing to purchase.

Chapter 4 Demand, Supply, and Markets © 2009 South-Western/Cengage Learning.

Individual Markets Demand and Supply Lecture 5 & 6 Dominika Milczarek-Andrzejewska.

SAYRE | MORRIS Seventh Edition Demand and Supply: an Introduction CHAPTER 2 2-1© 2012 McGraw-Hill Ryerson Limited.

ECON 1 The functioning of Markets The interaction of buyers and sellers (Chapter 4)

Econ 2301 Dr. Jacobson Mr. Stuckey Week 3 Class 3.

Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.

Main Definitions Market: –All situations that link potential buyers and potential sellers are markets. Demand: –A demand schedule shows price and quantity.

Economic Surplus Welfare Economics and Public Goods.

1 Chapter 3 Market Supply and Demand ©2002 South-Western College Publishing Key Concepts Key Concepts Summary Practice Quiz Internet Exercises Internet.

Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Managerial Economics, 9e Managerial Economics Thomas Maurice.

Copyright 2011 The McGraw-Hill Companies 3-1 Demand Individual Demand Determinants of Demand Supply Individual Supply Determinants of Supply Market Equilibrium.

Chapter 6: Demand, Supply & Markets The Supply Curve Supply The quantities of a good or service that sellers are willing and able to sell at various.

Demand Demand is a schedule or curve that shows the various amounts of a product that consumers will buy at each of a series of possible prices during.

Definitions Goods Putting it all together Chapter three To shift or not to shift $100 $200 $300 $400 $500 $ 500$500.

Supply and Demand A competitive market is a market in which there are   many buyers and sellers   of the same good or service. The supply and demand.

THE HAPPY MARKET!! MARKETS A PLACE OR SERVICE THAT ENABLES BUYERS AND SELLERS TO EXCHANGE GOODS, SERVICES AND RESOURCES.

Demand and Supply Chapters 4, 5 and 6. Demand demand is a schedule that shows the various amounts of a product consumers are WILLING and ABLE to BUY at.

Chapter 4 Professor Yuna Chen 1 © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for.

Intro To Microeconomics.  Cost is the money spent for the inputs used (e.g., labor, raw materials, transportation, energy) in producing a good or service.

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3: Supply and Demand 1.Describe how the demand curve.

Supply Supply is the various quantities of a good or service that producers are willing to sell at all possible market prices.

Chapter 3 Demand, Supply, and Market Equilibrium McGraw-Hill/Irwin

Demand, Supply, and Market Equilibrium

Chapter 3 Demand, Supply, and market equilibrium

Chapter 5: Market Equilibrium

Chapter 3 Demand, Supply, and market equilibrium

SUPPLY AND DEMAND I: HOW MARKETS WORK

3 Demand, Supply, and Market Equilibrium.

3 Demand, Supply, and Market Equilibrium.

Chapter 7 Supply & Demand

3 C H A P T E R Individual Markets: Demand & Supply.

3 Demand, Supply, and Market Equilibrium.

Demand Chapter 20.

Chapter 4 Demand and Supply.

Presentation transcript:

Demand, supply, and Market equilibrium Chapter 3 Demand, supply, and Market equilibrium

Taylor Economics – Chapter 3 1. The law of demand is illustrated by a demand curve that is: Vertical Horizontal Upward sloping Downward sloping Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 1. The law of demand is illustrated by a demand curve that is: Vertical Horizontal Upward sloping Downward sloping Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 2. Which would cause a decrease in the quantity of computers supplied? An increase in the demand for computers A decrease in the demand for computers An increase in the incomes of consumers A decrease in the price of parts for making computers Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 2. Which would cause a decrease in the quantity of computers supplied? An increase in the demand for computers A decrease in the demand for computers An increase in the incomes of consumers A decrease in the price of parts for making computers Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 3. When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n): increase in the demand for gasoline. decrease in the demand for gasoline. increase in the supply of gasoline. decrease in the supply of gasoline. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 3. When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n): increase in the demand for gasoline. decrease in the demand for gasoline. increase in the supply of gasoline. decrease in the supply of gasoline. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 4. A schedule which shows the various amounts of a product producers are willing and able to produce at each price in a series of possible prices during a specified period of time is called: Quantity supplied Quantity demanded Supply Demand Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 4. A schedule which shows the various amounts of a product producers are willing and able to produce at each price in a series of possible prices during a specified period of time is called: Quantity supplied Quantity demanded Supply Demand Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 5. If the quantity supplied of a product is less than the quantity demanded, then: There is a shortage of the product There is a surplus of the product The product is a normal good The product is an inferior good Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 5. If the quantity supplied of a product is less than the quantity demanded, then: There is a shortage of the product There is a surplus of the product The product is a normal good The product is an inferior good Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 6. If the market price is above the equilibrium price: A shortage will occur and producers will produce more and lower prices A surplus will occur and producers will produce less and lower prices A surplus will result and consumers will bid prices up Producers will make extremely high profits Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 6. If the market price is above the equilibrium price: A shortage will occur and producers will produce more and lower prices A surplus will occur and producers will produce less and lower prices A surplus will result and consumers will bid prices up Producers will make extremely high profits Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 7. A competitive market will: achieve an equilibrium price. produce shortages. produce surpluses. create disorder. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 7. A competitive market will: achieve an equilibrium price. produce shortages. produce surpluses. create disorder. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 8. A product market is in equilibrium: when there is no surplus of the product. when there is no shortage of the product. when consumers want to buy more of the product than producers offer for sale. where the demand and supply curves intersect. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 8. Households and businesses are: both buyers in the resource market. both sellers in the product market. sellers in the resource and product markets respectively. sellers in the product and resource markets respectively. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 9. A headline reads "Storms destroy half of the lettuce crop." This situation would lead to a(n): Increase in the price of lettuce and quantity purchased Decrease in the price of lettuce and quantity purchased Increase in the price of lettuce and decrease in quantity purchased Decrease in the price of lettuce and increase in quantity purchased Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 9. A headline reads "Storms destroy half of the lettuce crop." This situation would lead to a(n): Increase in the price of lettuce and quantity purchased Decrease in the price of lettuce and quantity purchased Increase in the price of lettuce and decrease in quantity purchased Decrease in the price of lettuce and increase in quantity purchased Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 10. Government-set price floors and price ceilings: Do not affect the rationing function of price in a free market Interfere with the rationing function of price in a free market Result in surpluses of products in markets where they are used Result in shortages of products in markets where they are used Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 3 10. Government-set price floors and price ceilings: Do not affect the rationing function of price in a free market Interfere with the rationing function of price in a free market Result in surpluses of products in markets where they are used Result in shortages of products in markets where they are used Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.