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Supply and Demand

Supply and Demand - demanded Chapter 3 Demand and SUPPLY...

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1 The Undergraduate Economics Society is a SAC recognized club for all Penn undergraduates who have a common interest in economics, no matter your school or major. The UES Board would like to invite you to our annual General Body Meeting on Monday, September 20th at 8:30 PM in McNeil Room 103 . This is a wonderful opportunity to get to know more about the club, find out ways to get involved, and best of all, enjoy free food and drink from Chipotle! We are planning to do big and exciting things this year and would love to tell you how you can be involved in them. Chapter 3 Supply and Demand: An Introduction The Invisible Hand Demand and Quantity Demanded Supply and Quantity Supplied Market Equilibrium
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2 Chapter 3 Demand and SUPPLY Demand Curve = a schedule or graph showing the quantity of a good that buyers wish to buy at each price. (All other influences on consumer’s purchases remain the same). Negative slope: lower prices increase quantity
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Unformatted text preview: demanded. Chapter 3 Demand and SUPPLY Supply Curve = a curve or schedule showing the quantity of a good that sellers wish to sell at each price. (all other influences on sellers remain constant) Positive slope: At higher prices sellers are willing to sell more units 3 Chapter 3 Demand and SUPPLY There is normally one price where quantity of supply = quantity of demand Equilibrium Price & Quantity : The price and quantity for which quantity demanded=quantity supplied. Market Equilibrium : Occurs in a market when all buyers and sellers are satisfied with their respective quantities at the market price. Chapter 3: market surplus and shortage Market surplus/Excess supply : a situation in which the quantity supplied is great and the quantity demanded. Market shortage/Excess demand : a situation in which quantity demanded is created in the quantity supplied....
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