The Basics of Supply and Demand•Understand and predict how economic conditions affect market price and production•Evaluate the impact of government price controls, minimum wages, price supports, and production incentives•Determine how taxes, subsidies, tariffs, and import quotas affect consumers and producersWhat do we use demand and supply analysis for? Econ 100A Mortimer8/31/20092
The relationship between the price of a good and the quantity demanded, when all other factors that influence demand are held constantSUPPLY AND DEMANDMarket Demand CurveA curve that shows the quantityof a good that consumers are willing to buy at different prices. ●Law of DemandEcon 100A Mortimer8/31/20093Demand influencing factors may include income, the weather, and the prices of other goods. Shifts in DemandPQ
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