Demand and Supply Goals

# Demand and Supply Goals - Demand and Supply Goals Goals...

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Demand and Supply Goals Goals List non-price demand shifters and show on a graph how shifts effect equilibrium price and quantity. List non-price supply shifters and show on a graph how shifts effect equilibrium price and quantity. Analyze the results of shifts in demand and supply together and how it affects equilibrium price and quantity. Distinguish between changes in 'demand' (supply) and changes in 'quantity demanded’ (supplied); that is, between shifting a curve and moving along a curve as price changes. Demonstrate with graphs a market surplus or shortage and what adjustments are made to return to equilibrium. Explain and demonstrate the impact of effective price controls in the form of price ceilings and price. Explain and demonstrate the impact of quantity controls such as quotas and total bans. δε mand Demand and Supply

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Outline I. Demand and Supply Outline a. Demand i. Law of Demand ii. Demand Schedule, Demand curve iii. Shifts in Demand b. Supply i. Supply curve and Supply Schedule ii. Shifts in Supply i. Examples and Problems iii. Quantity controls II. DEMAND a. Defined: quantity (of constant quality units) a consumer is willing and able to purchase at each and every price for a given time period , other things held equal ( ceteris paribus ) i. Clarification about Prices 1. Money prices a. observed today in today’s dollars b. absolute price c. nominal price d. current price 2. Relative prices
a. prices expressed in terms of another commodity b. relative to something else c. price relative to the average of all other prices b. Law of Demand: Inverse or negative relationship of prices and quantity demanded, ceteris paribus i. R easons behind law of demand: Substitution effect ii. Reasons behind law of demand: Real-income effect

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## This note was uploaded on 04/09/2008 for the course ECN 121 taught by Professor Dianafortier during the Spring '08 term at Waubonsee.

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Demand and Supply Goals - Demand and Supply Goals Goals...

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