1. Demand, Supply, and Market Equilibrium

2. Markets Bring Buyers (demanders) and sellers (suppliers) together
Stores
Stock Exchanges
Even Employment

3. Demand
Shows amount of product that consumers and willing and able to purchase
Demand Curve (Price by Quantity)
Law of Demand
Diminishing marginal Utility
Determinants of Demand

4. Changes in Demand Preferences # of Buyers Incomes
Price of related good
Substitute good
Complementary good
Consumer Expectation
Changes in Quantity demanded

5. Supply Amounts of product a producer is willing and able to make
Law of Supply- more at high price less at a low price
Marginal cost
Supply Curve

6. Determinants of Supply
Resource Prices
Technology
Taxes and Subsidies
Prices of other goods
Substitution in production
Producer Expectations
Number of Sellers

7. Market Equilibrium Price where intensions of buyers and sellers match
Surplus and Shortage
Changes in in Supply or Demand shift the market equilibrium

8. Application: Government Set Prices
Price Ceiling
Rationing
Black Markets Fill gaps
Rent Control
Price Floor