2. 3 - 1 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Individual Markets Demand & Supply 3 C H A P T E R

3. 3 - 2 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show MARKETS DEFINED MARKETS POTENTIAL SELLERS POTENTIAL BUYERS

4. 3 - 3 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show $5 4 3 2 1 DEMAND DEFINED DEMAND SCHEDULE Various Amounts A Series of Possible Prices …a specified time period …other things being equal PQDQD 10 20 35 55 80

5. 3 - 4 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show LAW OF DEMAND As Price Falls… …Quantity Demanded Rises As Price Rises… …Quantity Demanded Falls An inverse relationship exists between price and quantity demanded

6. 3 - 5 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show P Q o $5 4 3 2 1 PQDQD $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN Connect the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND

7. 3 - 6 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Diminishing Marginal Utility Income Effect Substitution Effect LAW OF DEMAND Demand Curve Individual and Market Demand

8. 3 - 7 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Determinants of Demand Determinants Cause the ENTIRE curve to shift!

9. 3 - 8 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show DETERMINANTS OF DEMAND Tastes and Preferences Number of Buyers Incomes – Normal (Superior) & Inferior Goods Prices of Related Goods – Substitutes & Complements – Unrelated Goods Expectations

10. 3 - 9 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show P Q o $5 4 3 2 1 PQDQD $5 4 3 2 1 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 D’ Increase in Demand Increase in Quantity Demanded 10 20 35 55 80 30 40 60 80 + GRAPHING DEMAND

11. 3 - 10 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show P Q o $5 4 3 2 1 PQDQD $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 -- 10 20 40 60 D’ Decrease in Demand Decrease in Quantity Demanded GRAPHING DEMAND

12. 3 - 11 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Tastes and Preferences

13. 3 - 12 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Tastes + Pref Markets will respond to changes in societal preferences. Remember the Nudie Suit?

14. 3 - 13 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Number of Buyers More buyers = increase in demand/less = decrease

15. 3 - 14 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show INCOME Normal Good= Positive Correlation with changes in Income

16. 3 - 15 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Income Con’t Inferior good =negative correlation with income

17. 3 - 16 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Related Goods Complements—How do prices changes impact the demand for these items?

18. 3 - 17 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show An increase in the price of A (Chips) will lead to a decrease in demand for the related good B(salsa) A decrease in the price of A(Chips) will lead to an increase in the demand for the related good B (Salsa) INDIRECT RELATIONSHIP

19. 3 - 18 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Substitutes How will supply and demand be impacted here?

20. 3 - 19 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show An increase in the price of Pepsi will lead to an increase in the demand for Coke. A decrease in the price of Pepsi will lead to a decrase in the demand for Coke. DIRECT RELATIONSHIP

21. 3 - 20 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Expectations 9/11 Gas LIne

22. 3 - 21 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show YOUR TURN! Choose a Determinant and manipulate the graph. Be prepared to present to class!

23. 3 - 22 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show SUPPLY DEFINED SUPPLY SCHEDULE $1 2 3 4 5 PQSQS CORN Various Amounts A Series of Possible Prices …a specified time period …other things being equal 5 20 35 50 60

24. 3 - 23 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show LAW OF SUPPLY As Price Rises… …Quantity Supplied Rises As Price Falls… …Quantity Supplied Falls A direct relationship exists between price and quantity supplied

25. 3 - 24 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 PQSQS Price of Corn Quantity of Corn CORN Plot the Points Connect the Points GRAPHING SUPPLY

26. 3 - 25 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 PQSQS Price of Corn Quantity of Corn CORN S’ 45 30 20 0 -- Decrease in Supply Decrease in Quantity Supplied GRAPHING SUPPLY

27. 3 - 26 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 Price of Corn Quantity of Corn $5 4 3 2 1 60 50 35 20 5 PQSQS CORN 80 70 60 45 30 S’ Increase in Supply Increase in Quantity Supplied GRAPHING SUPPLY

28. 3 - 27 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show DETERMINANTS OF SUPPLY Resource Prices Technology Taxes & Subsidies Prices of Other Goods Price Expectations Number of Sellers

29. 3 - 28 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show MARKET DEMAND & SUPPLY $5 4 3 2 1 10 20 35 55 80 $5 4 3 2 1 60 50 35 20 5 x 200 B U Y E R S PQDQD BUSHELS OF CORN MARKET DEMAND 2,000 4,000 7,000 11,000 16,000 x 200 S E L E R S 12,000 10,000 7,000 4,000 1,000 PQSQS BUSHELS OF CORN MARKET SUPPLY EQUILIBRIUM Graphically…

30. 3 - 29 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 PQDQD $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D PQSQS Price of Corn Quantity of Corn CORN MARKET CORN MARKET Market Clearing Equilibrium MARKET DEMAND & SUPPLY

31. 3 - 30 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 PQDQD $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D PQSQS Price of Corn Quantity of Corn CORN MARKET CORN MARKET Surplus At a $4 price more is being supplied than demanded MARKET DEMAND & SUPPLY

32. 3 - 31 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show 11 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 PQDQD $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D PQSQS Price of Corn Quantity of Corn CORN MARKET CORN MARKET At a $2 price more is being demanded than supplied Shortage MARKET DEMAND & SUPPLY

33. 3 - 32 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Demand & Supply Elasticities & Government-Set Prices 20 C H A P T E R

34. 3 - 33 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show HOW MUCH MORE OR LESS? DOES IT MATTER? to whom? Think About It... THE LAW OF DEMAND SAYS... PRICE ELASTICITY OF DEMAND Consumers will buy more when prices go down and less when prices go up Price Elasticity Provides an Answer

35. 3 - 34 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show The percentage change in price The percentage change in quantity.01.02 Elasticity is.5 Q P P1P1 P2P2 Q1Q1 Q2Q2 D Measures Responsiveness to Price Changes PRICE ELASTICITY OF DEMAND

36. 3 - 35 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show The percentage change in price The percentage change in quantity Elasticity is.5 Q P P1P1 P2P2 Q1Q1 Q2Q2 D Commonly Expressed as… PRICE ELASTICITY OF DEMAND  %P %  Q d

37. 3 - 36 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show The Price-Elasticity Coefficient and Formula PRICE ELASTICITY OF DEMAND E d = Percentage change in quantity demanded of product X Percentage change in price of product X Or equivalently… E d = Percentage change in quantity demanded of X Original quantity demanded of X Change in price of X  Original price of X Elimination of the Minus Sign

38. 3 - 37 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Interpretations of E d PRICE ELASTICITY OF DEMAND Elastic Demand E d =.04.02 = 2 Inelastic Demand E d =.01.02 =.5 Unit Elastic Demand E d =.02 = 1

39. 3 - 38 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Inelastic from 0 to 1 Typical of necessities one must have Typical of luxuries one wants Elastic from 1 to  Unit elastic when exactly = 1 Price change does not reduce total revenue Price Elasticity is... PRICE ELASTICITY & TOTAL REVENUE

40. 3 - 39 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Extreme Cases PRICE ELASTICITY OF DEMAND Perfectly Inelastic Demand Perfectly Elastic Demand P 0 P 0 D1D1 E d = 0 D2D2 E d =  Q Q

41. 3 - 40 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Refinement – The Midpoints Formula PRICE ELASTICITY OF DEMAND EdEd = Change in quantity Sum of Quantities/2 Change in price Sum of prices/2 

42. 3 - 41 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Q P D When prices are low, TR Quantity Demanded PRICE ELASTICITY & TOTAL REVENUE So is total revenue

43. 3 - 42 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Q P D Total revenue rises with price to a point... then declines Elastic Demand Elastic Demand Inelastic Demand TR Quantity Demanded PRICE ELASTICITY & TOTAL REVENUE Inelastic Demand

44. 3 - 43 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Q P D Total revenue rises with price to a point... then declines Elastic Demand Elastic Demand Inelastic Demand TR Quantity Demanded PRICE ELASTICITY & TOTAL REVENUE Inelastic Demand Unit Elastic

45. 3 - 44 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show DETERMINANTS OF PRICE ELASTICITY OF DEMAND Substitutability Proportion of Income Luxuries versus Necessities Time Applications... Bumper Crops Excise Taxes Decriminalization of Illegal Drugs Minimum Wage

46. 3 - 45 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show Now compare the market period short-run, and long run... PRICE ELASTICITY OF SUPPLY Es=Es= Percentage change in quantity supplied of good X Percentage change in the price of good X

47. 3 - 46 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show PoPo P Q D1D1 QoQo An increase in demand without enough time to change supply causes… SmSm Market period PRICE ELASTICITY OF SUPPLY

48. 3 - 47 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show PoPo PmPm P Q D1D1 QoQo D2D2 An increase in demand without enough time to change supply causes… an increase in price SmSm Market period PRICE ELASTICITY OF SUPPLY

49. 3 - 48 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show PoPo P Q D1D1 QoQo Short Run PRICE ELASTICITY OF SUPPLY An increase in demand with less intensity supply use causes... SsSs

50. 3 - 49 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show PoPo P Q D1D1 QoQo D2D2 Short Run PRICE ELASTICITY OF SUPPLY PsPs An increase in demand with less intensity supply use causes...a lower increase in price SsSs QsQs

51. 3 - 50 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show PoPo P Q D1D1 QoQo Long Run PRICE ELASTICITY OF SUPPLY An increase in demand in the long run allows greater change causing... SLSL

52. 3 - 51 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show PoPo P Q D1D1 QoQo D2D2 Long Run PRICE ELASTICITY OF SUPPLY PLPL An increase in demand in the long run allows greater change causing... SLSL QLQL Even more elastic response - less price increase

53. 3 - 52 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show CROSS ELASTICITY OF DEMAND E xy = Percentage change in quantity demanded of good X Percentage change in the price of good y Positive Sign Goods are Substitutes Negative Sign Goods are Complementary Zero or near-zero value Goods are Independent

54. 3 - 53 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show INCOME ELASTICITY OF DEMAND E i = Percentage change in quantity demanded Percentage change in income Positive Sign Goods are Normal or Superior Negative Sign Goods are Inferior

55. 3 - 54 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show GOVERNMENT-SET PRICES Price Ceilings & Shortages Rationing Problem Black Markets Rent Controls Credit Card Interest Ceilings

56. 3 - 55 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show GOVERNMENT-SET PRICES Price Ceilings & Shortages D D S S Legal Price Ceiling P PcPc SHORTAGE P Q

57. 3 - 56 Copyright McGraw-Hill/Irwin, 2002 Markets Demand Defined Demand Graphed Changes in Demand Supply Defined Supply Graphed Changes in Supply Equilibrium Surpluses Shortages Key Terms Previous Slide Next Slide End Show D D S S Legal Price Floor P PfPf SURPLUS Q QsQs QdQd P Q GOVERNMENT-SET PRICES Price Floors & Surpluses