Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.
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Transcript of Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.
![Page 1: Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.](https://reader035.fdocuments.in/reader035/viewer/2022080916/56649ea75503460f94baa1bb/html5/thumbnails/1.jpg)
Demand, Supply, and Prices
Dr. T. D. Mitchell
Bonneville High School
Idaho Falls, Idaho
![Page 2: Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.](https://reader035.fdocuments.in/reader035/viewer/2022080916/56649ea75503460f94baa1bb/html5/thumbnails/2.jpg)
Demand, Supply, and Prices
• Concept Review• Demand is the willingness to buy a good or a service
and the ability to pay for it.• Supply is the willingness and ability to produce and sell
a product.
• Key Concept• The equilibrium price is the price at which quantity
demanded and quantity demanded.
![Page 3: Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.](https://reader035.fdocuments.in/reader035/viewer/2022080916/56649ea75503460f94baa1bb/html5/thumbnails/3.jpg)
Seeking Equilibrium: Demand and Supply
• Objective• Explore market equilibrium and see how it is reached.• Explain how demand and supply interact to determine
equilibrium price.• Analyze what causes surplus, shortage, and
disequilibrium.• Identify how changes to demand and supply affect the
equilibrium price.
![Page 4: Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.](https://reader035.fdocuments.in/reader035/viewer/2022080916/56649ea75503460f94baa1bb/html5/thumbnails/4.jpg)
The Intersection of Demand and Supply
• The market place is where demand and supply interact.
• The market moves to equilibrium.
• Equilibrium price
• Market Demand and Supply Schedule
![Page 5: Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.](https://reader035.fdocuments.in/reader035/viewer/2022080916/56649ea75503460f94baa1bb/html5/thumbnails/5.jpg)
The Intersection of Demand and Supply
• Market Demand and Supply Curve
![Page 6: Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.](https://reader035.fdocuments.in/reader035/viewer/2022080916/56649ea75503460f94baa1bb/html5/thumbnails/6.jpg)
Reaching the Equilibrium Price
![Page 7: Demand, Supply, and Prices Dr. T. D. Mitchell Bonneville High School Idaho Falls, Idaho.](https://reader035.fdocuments.in/reader035/viewer/2022080916/56649ea75503460f94baa1bb/html5/thumbnails/7.jpg)
Surplus, Shortage, and Equilibrium
• Surplus
• Shortage
• Price Ceiling
• Price Floor
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The Problem with Disequilibrium