Download presentation
Presentation is loading. Please wait.
1
Demand and supply analysis
Market equilibrium
2
Equilibrium price and output: The Market Demand and Supply of Potatoes (Monthly)
3
The determination of market equilibrium (potatoes: monthly)
Supply D d C c Price (cents per kg) b B a A Demand Quantity (tonnes: 000s)
4
The determination of market equilibrium (potatoes: monthly)
Supply D SURPLUS ( ) d C c Price (cents per kg) b B a A Demand Quantity (tonnes: 000s)
5
The determination of market equilibrium (potatoes: monthly)
Supply D d C c Price (cents per kg) b SHORTAGE ( ) B a A Demand Quantity (tonnes: 000s)
6
The determination of market equilibrium (potatoes: monthly)
Supply D d Price (cents per kg) b B a A Demand Qe Quantity (tonnes: 000s)
7
Demand and supply analysis
Effect of shift in the demand curve
8
Effect of a shift in the demand curve
P S An increase in demand g Pe1 D1 O Qe1 Q
9
Effect of a shift in the demand curve
P S g Pe1 D1 O Qe1 Q
10
Effect of a shift in the demand curve
P S g Pe1 D2 D1 O Qe1 Q
11
Effect of a shift in the demand curve
P S i Pe2 g h Pe1 D2 D1 O Qe1 Qe2 Q
12
Effect of a shift in the demand curve
P S A decrease in demand D2 g Pe1 D1 O Qe1 Q
13
Effect of a shift in the demand curve
P S m g Pe1 n Pe2 D2 D1 O Qe2 Qe1 Q
14
Demand and supply analysis
Effect of shift in the supply curve
15
Effect of a shift in the supply curve
A decrease in supply g Pe1 D O Qe1 Q
16
Effect of a shift in the supply curve
g Pe1 D O Qe1 Q
17
Effect of a shift in the supply curve
g Pe1 D O Qe1 Q
18
Effect of a shift in the supply curve
k Pe3 j g Pe1 D O Qe3 Qe1 Q
19
Effect of a shift in the supply curve
An increase in supply g Pe1 D O Qe1 Q
20
Effect of a shift in the supply curve
g p Pe1 q Pe2 D O Qe1 Qe2 Q
Similar presentations
