Topic 2 _ Part 2 - 49 of 69 3.1 - Firms and Households: The...

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Unformatted text preview: 49 of 69 3.1 - Firms and Households: The Basic Decision-Making Units 3.2 - Input Markets and Output Markets: The Circular Flow 3.3 - Demand in Product/Output Markets 3.3.1 - Changes in Quantity Demanded versus Changes in Demand 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3.3 - Other Determinants of Household Demand 3.3.4 - Shift of Demand versus Movement Along the Demand Curve 3.3.5 - From Household Demand to Market Demand 3.4 - Supply in Product/Output Markets 3.4.1 - Price and Quantity Supplied: The Law of Supply 3.4.2 - Other Determinants of Supply 3.4.3 - Shift of Supply versus Movement Along the Supply Curve 3.4.4 - From Individual Supply to Market Supply 3.5 - Market Equilibrium 3.5.1 - Excess Demand 3.5.2 - Excess Supply 3.5.3 - Changes in Equilibrium 50 of 69 3.4 - Supply in Product/Output Markets profit = revenues - costs. Successful firms make profits because they are able to sell their products for more than it costs to produce them. 51 of 69 3.1 - Firms and Households: The Basic Decision-Making Units 3.2 - Input Markets and Output Markets: The Circular Flow 3.3 - Demand in Product/Output Markets 3.3.1 - Changes in Quantity Demanded versus Changes in Demand 3.3.2 - Price and Quantity Demanded: The Law of Demand 3.3.3 - Other Determinants of Household Demand 3.3.4 - Shift of Demand versus Movement Along the Demand Curve 3.3.5 - From Household Demand to Market Demand 3.4 - Supply in Product/Output Markets 3.4.1 - Price and Quantity Supplied: The Law of Supply 3.4.2 - Other Determinants of Supply 3.4.3 - Shift of Supply versus Movement Along the Supply Curve 3.4.4 - From Individual Supply to Market Supply 3.5 - Market Equilibrium 3.5.1 - Excess Demand 3.5.2 - Excess Supply 3.5.3 - Changes in Equilibrium 52 of 69 3.4.1 Price and Quantity Supplied: The Law of Supply quantity supplied The amount of a particular product that a firm would be willing and able to offer for sale at a particular price during a given time period. supply schedule A table showing how much of a product firms will sell at different prices. 3.4 - Supply in Product/Output Markets 53 of 69 TABLE 3.3 Clarence Brown’s Supply Schedule for Soybeans Price (Per Bushel) Quantity Supplied (Bushels Per Year) $1.50 1.75 10,000 2.25 20,000 3.00 30,000 4.00 45,000 5.00 45,000 t FIGURE 3.6 Clarence Brown’s Individual Supply Curve 3.4.1 Price and Quantity Supplied: The Law of Supply 3.4 - Supply in Product/Output Markets 54 of 69 law of supply The positive relationship between price and quantity of a good supplied...
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Topic 2 _ Part 2 - 49 of 69 3.1 - Firms and Households: The...

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