1. Supply and Demand Chapter 3

2. Competitive Market Lots of buyers and sellers dealing in identical goods.

3. Catherine’s Demand Curve

4. Market Demand as the Sum of Individual Demands

5. Shifts in the Demand Curve

6. Shift Factors for Demand 1.Income. 2.Prices of related goods (substitutes and complements). 3.Tastes/Preferences. 4.Expectations. 5.Number of buyers.

7. Shifts in the Demand Curve versus Movements along the Demand Curve

8. Market Supply as the Sum of Individual Supplies

10. Shifts in the Supply Curve

11. Shift Factors for Supply 1.Input prices. 2.Technology. 3.Weather. 4.Expectations. 5.Number of sellers.

12. The Equilibrium of Supply and Demand

13. Markets Not in Equilibrium

14. A Three-Step Program for Analyzing Changes in Equilibrium 1.Decide whether the event shifts the supply or demand curve (or perhaps both). 2.Decide in which direction the curve shifts. 3.Use the supply-and-demand to see how the shift changes the equilibrium price and quantity.

15. How an Increase in Demand Affects the Equilibrium

16. How a Decrease in Supply Affects the Equilibrium

17. A Shift in Both Supply and Demand