Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real...

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PUTTING SUPPLY & DEMAND TOGETHER Econ Alive Chapter 6

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Transcript of Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real...

Page 1: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

PUTTING SUPPLY & DEMAND TOGETHER

Econ Alive Chapter 6

Page 2: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

EQUILIBRIUM PRICE

Price at which Quantity Demanded and Quantity Supplied are equal

In the real world, Demand and Supply work together

Page 3: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

CHANGES IN DEMAND OR SUPPLYDEMAND AND SUPPLY CAN STILL CHANGE!

CHANGES IN DEMAND CHANGES IN SUPPLY

Key Words: Buyers/Consumers

Determinants: Population Income of Consumers Change in Consumer

Tastes Price of Substitutes Price of Complementary

Goods Consumer Expectations

Key Words: Sellers/Suppliers/ Producers/Manufacturers

Determinants: Price of Inputs # of Firms in the Industry Business

Taxes/Government Policy Technology Producer Expectations Natural Disaster/Major

Event

Page 4: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

SHIFTS IN EQUILIBRIUM PRICE

When Demand or Supply changes, Equilibrium price changes

Page 5: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

INCREASE IN DEMAND

Increases Equilibrium Price & Quantity

Page 6: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

DECREASE IN DEMAND

Decrease in Equilibrium Price and Quantity

Page 7: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

WHEN SUPPLY DECREASES

Increases Equilibrium Price

Decreases Equilibrium Quantity

Page 8: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

WHEN SUPPLY INCREASES

Equilibrium Price Decreases

Equilibrium Quantity Increases

Page 9: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

SHORTAGE

Situation in which quantity demanded is greater than quantity supplied

Page 10: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

SURPLUS

Situation in which quantity supplied is greater than quantity demanded

Page 11: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

USE THE FORCE! (OF THE MARKET)

We don’t like shortages or surpluses! The market wants to correct itself and

adjust the price to get back to equilibrium!

Page 12: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

PRICE CONTROLS

Government gets involved To help consumers? Protect interest groups?

Creates: Price Ceilings Price Floors

Page 13: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

PRICE CEILING

Legal maximum price that may be charged for a good or services

Often creates shortages

Page 14: Econ Alive Chapter 6. Price at which Quantity Demanded and Quantity Supplied are equal In the real world, Demand and Supply work together.

PRICE FLOOR

Legal Minimum price that may be charged for a good or service

Often creates surpluses


The Law of Demand - Pearson · PDF file2.3 Describe the relationship between price and quantity demanded, ... 2.4 Explain the difference between a change in quantity demanded and a

The Law of Demand - Pearson · PDF file2.3 Describe the relationship between price and quantity demanded, ... 2.4 Explain the difference between a change in quantity demanded and a

when quantity demanded = quantity supplied. Market equilibrium: when quantity demanded = quantity supplied.

when quantity demanded = quantity supplied. Market equilibrium: when quantity demanded = quantity supplied.

Selling Quantity Price Demanded $ 3 $ 2 $ 1 $ 4 10 25 40 60 15 $ 5.

Selling Quantity Price Demanded $ 3 $ 2 $ 1 $ 4 10 25 40 60 15 $ 5.

dachpian.weebly.com · 2018. 8. 23. · At that price, the quantity demanded is much smaller than at the equilibrium price. Quantity demanded drops from 15 000 to 5000 bags per month.

dachpian.weebly.com · 2018. 8. 23. · At that price, the quantity demanded is much smaller than at the equilibrium price. Quantity demanded drops from 15 000 to 5000 bags per month.

“My baby” -April 2010 The consumers determine the quantity demanded for the good Producers determine the quantity supplied The interaction of demand.

“My baby” -April 2010 The consumers determine the quantity demanded for the good Producers determine the quantity supplied The interaction of demand.

COBWEB MODEL Ao CHEMICALS (millions of pounds/year) Price SUPPOSE PRICE IS ABOVE EQUILIBRIUM PRICE. QUANTITY SUPPLIED IS GREATER THAN QUANTITY DEMANDED.

COBWEB MODEL Ao CHEMICALS (millions of pounds/year) Price SUPPOSE PRICE IS ABOVE EQUILIBRIUM PRICE. QUANTITY SUPPLIED IS GREATER THAN QUANTITY DEMANDED.

Graph the following information Price of iPhone 6 Quantity demanded Quantity supplied $10000200 $80050150 $600100 $40015050 $2002000 What do we call the.

Graph the following information Price of iPhone 6 Quantity demanded Quantity supplied $10000200 $80050150 $600100 $40015050 $2002000 What do we call the.

M ARKET EQUILIBRIUM. Market equilibrium exists when quantity demanded (Qd) equals quantity supplied (Qs). It can be determined by the intersection between.

M ARKET EQUILIBRIUM. Market equilibrium exists when quantity demanded (Qd) equals quantity supplied (Qs). It can be determined by the intersection between.

Objectives Explain the law of demand Change in quantity demanded Change in demand.

Objectives Explain the law of demand Change in quantity demanded Change in demand.

Government in the Market. Market Disequilibrium If quantity demand exceeds quantity supplied or quantity supplied exceeds quantity demanded, a disequilibrium.

Government in the Market. Market Disequilibrium If quantity demand exceeds quantity supplied or quantity supplied exceeds quantity demanded, a disequilibrium.

Microeconomics – Unit 2 part 2. Price P Quantity Demanded Qd $9 2 83 7 5 6 9 Let’s assume Lindsey would see the quantity demanded at the following prices:

Microeconomics – Unit 2 part 2. Price P Quantity Demanded Qd $9 2 83 7 5 6 9 Let’s assume Lindsey would see the quantity demanded at the following prices:

Change In the Quantity Demanded The change in quantity demanded shows a change in the amount of a product purchased when there is CHANGE in price. This.

Change In the Quantity Demanded The change in quantity demanded shows a change in the amount of a product purchased when there is CHANGE in price. This.

Demand & Supply Demand is different from quantity demanded. Demand refers to the quantities demanded at ALL given prices while quantity demanded refers.

Demand & Supply Demand is different from quantity demanded. Demand refers to the quantities demanded at ALL given prices while quantity demanded refers.

Economics Mr. Bordelon. The point at which quantity demanded and quantity supplied are equal.

Economics Mr. Bordelon. The point at which quantity demanded and quantity supplied are equal.

CHAPTER 6: DEMAND, SUPPLY, AND PRICES. Key Concept: Equilibrium Market Equilibrium: Occurs when the quantity demanded and the quantity supplied at a.

CHAPTER 6: DEMAND, SUPPLY, AND PRICES. Key Concept: Equilibrium Market Equilibrium: Occurs when the quantity demanded and the quantity supplied at a.

Chapter Sixteen Equilibrium. Market Equilibrium A market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by.

Chapter Sixteen Equilibrium. Market Equilibrium A market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by.

Chapter Elasticity and Its Application 5. The Elasticity of Demand Elasticity – Measure of the responsiveness of quantity demanded or quantity supplied.

Chapter Elasticity and Its Application 5. The Elasticity of Demand Elasticity – Measure of the responsiveness of quantity demanded or quantity supplied.

1 Changes In Income A rise in income - with no change in price - leads to a new quantity demanded for each good –Normal good quantity demanded increases.

1 Changes In Income A rise in income - with no change in price - leads to a new quantity demanded for each good –Normal good quantity demanded increases.

Several factors will cause the quantity demanded at every price to change Quantity Price Demanded $4 1 $3 2 $2 3 $1 4 3 4 5 6 Price Quantity Demanded.

Several factors will cause the quantity demanded at every price to change Quantity Price Demanded $4 1 $3 2 $2 3 $1 4 3 4 5 6 Price Quantity Demanded.

CHAPTER 3 DEMAND AND SUPPLYd. it depends on the demand e. it depends on the quantity demanded Recall that a change in demand is different from a change in quantity demanded. 3. A change

CHAPTER 3 DEMAND AND SUPPLYd. it depends on the demand e. it depends on the quantity demanded Recall that a change in demand is different from a change in quantity demanded. 3. A change