Double Shifts in Supply and Demand

Slides:

Advertisements

Similar presentations

We will be using Cornell Note Taking Format Today! Smile and “Own the Day! Take one step at a time to Success in Economics class!

Advertisements

Demand and Supply Analysis. Demand and supply analysis The price mechanism: effect of a rise in demand the goods market The price mechanism: effect of.

Demand and supply analysis. The demand curve The demand curve: The demand for potatoes (monthly)

Demand and supply analysis

2.1 Markets Supply Pg 47 Oliver Chang. Determinant of Supply Taxes: increases production costs and reduces supply Subsidies: lowers producers’ costs and.

Lecturer : Muchdie, PhD in Economics  PhD in Economics, 1998, Dept. of Economics, The University of Queensland, Australia.  Post Graduate Diploma in.

1 Supply Schedule Price change – quantity supplied changes Q P S.

Law of Demand A decrease in the price of a good, all other things held constant, will cause an increase in the quantity demanded of the good. An increase.

Combining Supply and Demand Chapter 6.  Price at which quantity supplied is equal to quantity demanded  Intersection of the demand and supply curves.

ECONOMICS 211 CLICKER QUESTIONS Chapter 4 – Question Set #3.

Supply and Demand in Action The Motion of a “Free Market”

SUPPLY Factors that shift supply. TODAY’S AGENDA  Objective: To identify the factors that shift supply and which direction the curve shifts.  Essential.

What happens to supply when demand increases? Expansion ALONG the supply curve (E to E 1 ) Equilibrium re-established at E1 Higher price (P 1 )

Supply & Demand Shifts Part 3: Topic Completion. Shifts in Demand (TIPSE) Shifts in Supply (TIN) S & D Shifts.

Chapter Four: Supply and Demand. The Theory of Supply.

Increases and Decreases in Supply and Demand Mr. Raposo Monday, October 5, 2009.

PowerPoint Slides by Robert F. BrookerHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Managerial Economics in a Global Economy.

Chapter 4: The Market Forces of Supply and Demand 1.

Monetary Policy and the Interest Rate Controlling the Supply of Money.

SUPPLY and DEMAND The basic model of market economics.

Problem #1 Price of Gasoline rises and Autoworkers gain 10% pay raise Price Qty SUV’s D1D1 S1S $30K 2 Mil. E1E1 D2D S2S2.

Supply and Demand in Action The Motion of a “Free Market”

Changes in Equilibrium Lesson 2.7. Changes in Supply and Demand Law of Demand and Law of Supply describe what happens when prices change When price changes,

Supply Changes in the QUANTITY Supplied vs. Changes in Supply.

Jump to first page Impact on Equilibrium Price and Quantity of Demand Curve Shifters S E1E1 P E1 Q E1 1. Draw equilibrium condition 3. Determine new equilibrium.

DEMAND, SUPPLY, and MARKET EQUILIBRIUM Appendix (chapter 3)

Supply (The Business Point of View) Another Key Economic Concept.

Unit 1-8: Basic Economic Concepts

Do Now What would you do if your favorite shoes went on sale for $5? What would you do if your favorite shoes went on sale for $250?

Over the next 3 minutes you will see 10 questions relating to shifting demand and supply curves. Assuming for each question the original equilibrium point.

Causes of Inflation.

ENVR 210 CLICKER QUESTIONS Chapter 4 – Question Set #3.

Equilibrium Price, Equilibrium Quantity and the Interrelation of Markets.

Supply and Demand: Changes in Equilibrium. Change in Market Equilibrium: Change in Demand Price of caviar (per pound) Quantity of caviar (millions of.

Chapter 6 Combining Supply and Demand. Equilibrium- where the supply and demand curves cross. Equilibrium determines the price and the quantity to be.

IGCSE ECON How Prices are determined _chap 7.

Demand A Schedule Showing the Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time Amounts of a Good.

Markets in Action OBJECTIVE Demonstrate changes in market equilibrium.

Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 7 Interest Rates and Bond Prices.

Chapter 4: Demand Opener. Copyright © Pearson Education, Inc.Slide 2 Chapter 4, Opener Essential Question How do we decide what to buy.

Demand for Labour Demand for labour is a derived demand, which is determined by the demand for goods and services within the economy. When demand increases,

Demand Practice Essential Skill: C-5 Demonstrate and Understanding of Concepts.

Take Out Graphing Worksheet From Yesterday ■Objective: Practice single and double shifts of the supply and demand curve to find the new market equilibrium.

MARKET IN WHEAT Essential Skill: Demonstrate Understanding of Concepts Objective: To understand how supply and demand work together in a market.

Intro to Supply PRICE V. QUANTITY SUPPLIED. Today’s Objective  After today’s lesson, students will be able to…  Explain the relationship between price.

Take out Monopoly Worksheet  You will work on these questions individually for the first minutes of class  This will be collected  I will come.

Changes in Equilibrium!. Equilibrium Review Equilibrium is where quantity supplied and quantity demanded are equal. Graphically, equilibrium is the point.

D1D1 The 4 shifts of the Supply and Demand Curve Shift 1- Demand Away D0D0 S 0 Price (P) Quantity (Q) P0P0 Q0Q0 P1P1 Q1Q1 4. ∆Q S; Movement along the S.

ECO 365 Week 1 DQ 4 What is the difference between a movement along and shift of the demand curve? What would cause the demand curve to shift and provide.

Take Out Graphing Worksheet From Yesterday

You MUST watch this in PowerPoint mode

The Impact on Price or Quantity will be uncertain

1994 Microeconomics Question 3.

Market Equilibrium and Linear Equations

MARKET EQUILIBRIUM.

Increase in total revenue Decrease in total revenue

You MUST watch this in PowerPoint mode

Price Ceiling S Price PE D QE Quantity

Unit 1: Demand, Supply, and Consumer Choice

The Role of Money and Credit

The Impact on Price or Quantity will be uncertain

Supply Unit 2: Supply and Demand.

Shifts in both Supply and Demand What happens to Price

All makeup work is due by the beginning of class on Monday

Supply and Demand: Single and Multiple Changes in the Market for Homes

EQUATION 2.1 Demand Function.

Supply Unit 2: Supply and Demand.

How would you explain supply & demand?

Warm Up Explain the law of supply.

Factors that Shift Demand & Supply

Presentation transcript:

Double Shifts in Supply and Demand

Today’s Agenda Objective: To explain the change in price and quantity when there is a shift in both supply and demand. Essential Skill: To demonstrate an understanding of concepts.

Review of Single Curve Shifts

Dual Shifts D S P ? Q D S P ? Q D S P Q? D S P Q?

Quantity of Video Games (thousands) P increase Q same Decrease in Demand S1 S1 S1 S0 E1 E1 D0 E1 Price ($) Pe1 E Pe Now lets look at a leftward shift of the demand curve. Suppose that video games and video game consuls are complimentary goods. If the price for video game consul increases the demand for video games is going to decrease. This leftward shift of demand will cause the price to fall from P to P1 and the Equilibrium Quantity from Q to Q1. So when demand shifts to the left the Price will decrease and the Quantity will decrease. The supply curve does not move no shift in supply however we move point to point along the supply curve meaning the quantity supply is moving. D1 Qe1 Qe Quantity of Video Games (thousands)

Tip S P increases Q increases P increases Q decreases

Practice Complete the worksheet Use the tip to check your answers Compare answers with a partner