Mankiw Chapter 4 New

Mankiw Chapter 4 New - Chapter4 The Market Forces of Supply...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
The Market Forces of Supply and Demand M icroeconomics P R I N C I P L E S   O F P R I N C I P L E S   O F N. Gregory Mankiw N. Gregory Mankiw Chapter 4
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Three Basic Questions What should we produce? How should we produce it? Who should consume what we produce?
Background image of page 2
Chapter Outline Markets have two sets of actors: Buyers – call this the demand side of the market Sellers – call this the supply of the market Will begin by looking at the demand side in isolation. Then change gears and look at the supply side of markets in isolation Then bring the demand and supply sides of the story together
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Determinants of Demand Price of food Prices of other goods Income Tastes (preferences) Demographic factors Expectations
Background image of page 4
Demand Schedule A demand schedule is a table that shows the relationship between the price of a good and the quantity demanded.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Price 1’s Demand $13 0 12 0 11 1 10 2 9 3 8 4 7 5 6 6 5 7 4 8
Background image of page 6
Demand Curve A demand curve is a graph of the relationship between the price of a good and the quantity demanded.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Price Quantity $6 6 1’s Demand Curve Price I’s Demand $6 6 $4 8 $4 8
Background image of page 8
The law of demand is a claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. Law of Demand
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Price 1’s Demand 2’s Demand $13 0 1 12 0 2 11 1 3 10 2 4 9 3 5 8 4 6 7 5 7 6 6 8 5 7 9 4 8 10
Background image of page 10
Market Demand Schedule A market demand schedule is a table that shows the relationship between the price of a good and the quantity demanded by all buyers.
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/28/2012 for the course ECON 200 taught by Professor Vincent during the Fall '08 term at Maryland.

Page1 / 54

Mankiw Chapter 4 New - Chapter4 The Market Forces of Supply...

This preview shows document pages 1 - 12. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online