Applications and Extensions of Supply and Demand Analysis

Slides:



Advertisements
Similar presentations
PRICE Equilibrium: the point where demand and supply come together at the same price and quantity At this point the needs of both consumers and producers.
Advertisements

Market Equilibrium.
3 Web - 1 Copyright McGraw-Hill/Irwin, 2005 Changes in Supply and Demand Lettuce American Flags Pink Salmon Gasoline Sushi Preset Prices Nonpriced Goods.
Chapter 3. Supply and Demand Link to syllabus Skip discussions of substitutes and complements (p. 71), and of normal and inferior goods (p. 72).
3 SUPPLY AND DEMAND II: MARKETS AND WELFARE. Copyright © 2004 South-Western 7 Consumers, Producers, and the Efficiency of Markets.
Demand, supply, and Market equilibrium
Supply and Demand. Economic definitions for DEMAND Demand: the total amount consumers are willing and able to buy at all prices.
MARKET EQUILIBRIUM Quantity Price Quantity Price.
Chapter Five: Welfare Analysis. Consumer Surplus.
Microeconomics: Law of Supply & Demand
Module Supply and Demand: Supply and Equilibrium
Chapter 6 notes – all sections
Demand for and Supply of Greebes PRICE $ per Greebe QUANTITY DEMANDED (millions of Greebes) QUANTITY SUPPLIED (millions of Greebes) $
EQUILIBRIUM. IN YOUR NOTEBOOK If you have higher supply than demand, what is it called? If you have higher demand than supply, what is it called?
 As the price of a good or service that producers are willing and able to offer for sale during a certain period of time rises (or falls), the quantity.
Demand, Supply, and Market Equilibrium 3A McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Appendix.
SUPPLY & DEMAND. Demand  Demand is the combination of desire, willingness and ability to buy a product. It is how much consumers are willing to purchase.
Chapter 3A Additional Examples of Supply and Demand Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
ENVR 210 CLICKER QUESTIONS Chapter 4 – Question Set #3.
Chapter 6 Combining Supply and Demand. Equilibrium- where the supply and demand curves cross. Equilibrium determines the price and the quantity to be.
MARKET EQUILIBRIUM.   Market Equilibrium is when the quantity demanded and the quantity supplied at a particular price are EQUAL.   Equilibrium Price.
Combining Supply and Demand. Equilibrium Equilibrium is the point where supply and demand come together – Balance between price and quantity – The market.
Equilibrium MARKET DEMAND & SUPPLY $ $ x 200 B U Y E R S PQDQD BUSHELS OF CORN MARKET DEMAND 2,000 4,000.
# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Additional Examples of Supply and Demand Appendix 3W.
Demand, Supply and Market Equilibrium 03A Appendix McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
What is the Law of Supply? MODULE 6 SUPPLY AND EQUILIBRIUM.
Chapter 3 Demand, Supply, and Market Equilibrium McGraw-Hill/Irwin
(section 2) Changes in Market Equilibrium
Demand and Supply Applications
Chapter 5: Market Equilibrium
Additional Examples of Supply and Demand
Competitive Markets.
3 C H A P T E R Individual Markets Demand & Supply.
Demand & Supply.
Section 2 Module 7.
Surpluses, Shortages, & Government, oh my!
Price Ceilings & Price Floors.
Unit 2: Demand, Supply, and Consumer Choice
Unit 2: Demand, Supply, and Consumer Choice
Price Controls Who likes the idea of having a price ceiling on gas so prices will never go over $2 per gallon?
Chapter Six: Welfare Analysis.
Putting it all together
Mehdi Arzandeh, University of Manitoba
Chapter 6 Notes The Price System.
AP MICROECONOMICS Mr. Lindquist Unit #2.
Combining Supply and Demand
Putting Supply and Demand Together
S&D: Demand Shifts What is the equilibrium price?
Chapter 6 Prices Bring Markets to Balance
Unit 2: Demand, Supply, and Consumer Choice
Additional Examples of Supply and Demand
Unit 3: Demand, Supply, and Consumer Choice
Chapter Three: Supply and Demand.
Putting Supply and Demand Together
Chapter 6 Notes The Price System.
Unit 2: Demand, Supply, and Consumer Choice
3 C H A P T E R Individual Markets: Demand & Supply.
© 2013 Pearson.
Unit 2: Supply, Demand, and Consumer Choice
Additional Examples of Supply and Demand
Understanding Economics 2nd edition by Mark Lovewell and Khoa Nguyen
Additional Examples of Supply and Demand
Chapter 8 Review.
Shortage and Surplus By: Ben Quick.
Market Equilibrium – Consumer and Producer Surplus Graphically, we can identify the areas representing consumer and producer surplus, which.
AICE Economics Equilibrium.
MARKET EQUILIBRIUM.
19. The equilibrium quantity for blue jeans is 60 pairs.
Additional Examples of Supply and Demand
Chapter 6 Notes The Price System.
Presentation transcript:

Applications and Extensions of Supply and Demand Analysis 3 C H A P T E R WEB Applications and Extensions of Supply and Demand Analysis http://www.mcconnell16.com

Changes in Supply & Demand Single Changes Complex Changes Agricultural Products Lettuce – Oranges – Cherries Damage from Weather Example: Freeze of Lettuce Crops Graphically…

Lettuce Supply & Demand Crop Freezing Damage… P S2 S1 P2 Price (per pound) P1 D1 o Q2 Q1 Q Quantity

American Flags Patriotism Surge… P S1 D2 D1 o Q P2 Price (per flag) P1 Quantity

Pink Salmon Increase in Supply & Decrease in Demand P S1 S2 D1 D2 o Q Price (per fish) P2 D1 D2 o Q1 Q2 Q Quantity

Gasoline Decrease in Supply & Increase in Demand P S2 S1 D2 D1 o Q P2 Price (per gallon) P1 D2 D1 o Q1 Q2 Q Quantity

Sushi Increase in Demand & Increase in Supply P S1 S2 D2 D1 o Q Price (per pound) P1 D2 D1 o Q1 Q2 Q Quantity

Preset Prices Olympic Figure Skating Finals Tickets P S Equilibrium Price (per ticket) Predetermined Price P1 Shortage D o Q1 Q2 Q Quantity

Preset Prices Olympic Curling Preliminaries Tickets P S Predetermined Surplus P1 Price (per ticket) Equilibrium Price P2 D o Q2 Q1 Q Quantity

Nonpriced Goods The American Bison Before the Railroad No Price Is Price (per bison) No Price Is Determined & No Market Exists! Surplus o Q1 Q2 Q Quantity

Nonpriced Goods The American Bison After the Railroad Price of 0 Led to Excess Demand and Shortages Occurred Price (per bison) Shortage o Q3 Q4 Q Quantity

Transaction Surpluses Consumer Surplus - Oranges P Consumer Surplus Equilibrium Price = $8 Price (per bag) P1 D o Q1 Q Quantity (bags)

Transaction Surpluses Producer Surplus - Oranges P S Producer Surplus Equilibrium Price = $8 Price (per bag) P1 o Q1 Q Quantity (bags)

Transaction Surpluses Maximum Combined Surpluses P S Consumer Surplus Price (per bag) P1 Producer Surplus D o Q1 Q Quantity (bags)

Transaction Surpluses Efficiency Losses P Quantity Below the Equilibrium S Quantity Above the Equilibrium Price (per bag) D o Q2 Q1 Q3 Q Quantity (bags)

Transaction Surpluses Efficiency Losses P Quantity Below the Equilibrium S Quantity Above the Equilibrium Price (per bag) D o Q2 Q1 Q3 Q Quantity (bags)

nonpriced goods consumer surplus producer surplus efficiency losses Key Terms nonpriced goods consumer surplus producer surplus efficiency losses Copyright McGraw-Hill/Irwin, 2005 BACK END

Next: The Market System Chapter 4

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.