Chap003.7 - Predicting and Explaining Changes in Prices and...

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7 Chapter 3 - Supply and Demand: An Introduction Slide 37 Market Equilibrium ± Pizza Price Controls? z Market responses to a pizza price ceiling ² Long lines ² Preferential treatment to selected customers ² Alternative pricing strategies ² Poorer quality ingredients ² Black-market pizzas Chapter 3 - Supply and Demand: An Introduction Slide 38 Predicting and Explaining Changes in Prices and Quantities ± Distinguishing Between z A change in the quantity demanded ² A movement along the demand curve that occurs in response to a change in price z A change in demand ² A shift of the entire demand curve Chapter 3 - Supply and Demand: An Introduction Slide 39 An Increase in Quantity Demanded vs. an Increase in Demand Price ($/can) Quantity (1000s of cans/day) 5 2 3 4 1 4 12 2 6 0 D D Increase in quantity demanded
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