Chapter_3_Micro_clear

Chapter_3_Micro_clear - Chapter Three Demand, Supply, and...

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Chapter Three Demand, Supply, and the Market Microeconomics by Curtis, Irvine, and Begg Microeconomics by Curtis, Irvine, and Begg Canadian Edition, Canadian Edition, McGraw-Hill Ryerson, 2007 McGraw-Hill Ryerson, 2007
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Chapter 3 2 Learning Outcomes By the end of the chapter you should learn: By the end of the chapter you should learn: The market Demand and supply curve; equilibrium solutions Behind the demand/supply curve Shifts in demand/supply curve Simultaneous shifts in supply and demand Free and managed markets From individuals to markets How markets answer the what, how, and for whom
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Chapter 3.2 3 Some Key Terms Market a set of arrangements by which buyers and sellers are in contact to exchange goods or services Demand the quantity of a good buyers wish to purchase at each conceivable price Supply the quantity of a good sellers wish to sell at each conceivable price Illustrated… Illustrated…
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Chapter 3.2 4 Demand and Supply Price Demand Supply 800 200 0 1200 160 0 1600 120 40 1800 100 60 2000 80 80 2200 60 100 2400 40 120 2800 0 160 Table 3.1 Monthly Demand and Supply of Laptop PCs Quantity demanded Demand Similarly, supply and quantity supplied Note: “Other Things Being Equal” Assumption Ceteris Paribus Ceteris Paribus
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Chapter 3.2 5 The Equilibrium Price Price Demand Supply Excess Demand/Supply 800 200 0 1200 160 0 1600 120 40 1800 100 60 2000 80 80 2200 60 100 2400 40 120 2800 0 160 Demand > Supply Excess Demand Supply > Demand Excess Supply Equilibrium Equilibrium
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Chapter 3.3 6 Demand and Supply Curves 2800 2000 1200 80 Quantity Price Demand Demand Supply Supply Excess Supply at Price Above 2000 Excess Demand at Price Below 2000 E E
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Chapter 3.3 7 Computing the Market Equilibrium Price Demand Supply 800 200 0 1200 160 0 1600 120 40 1800 100 60 2000 80 80 2200 60 100 2400 40 120 2800 0 160 Demand
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This note was uploaded on 04/19/2010 for the course ECON econ201 taught by Professor Ianirvine during the Spring '10 term at Concordia Canada.

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Chapter_3_Micro_clear - Chapter Three Demand, Supply, and...

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