1. Managerial Economics-Charles W. Upton Valentine’s Day

2. The Demand for Chocolate Candy P D Q

3. Valentine’s Day The Demand for Chocolate Candy P D Q QoQo PoPo

4. Valentine’s Day The Supply and Demand for Chocolate Candy P D Q Q1Q1 P1P1 S

5. Valentine’s Day The Supply and Demand for Chocolate Candy P D Q Q1Q1 P1P1 S D*

6. Valentine’s Day The Supply and Demand for Chocolate Candy P D Q Q1Q1 P1P1 S D* Q2Q2 P2P2

7. Valentine’s Day The Supply and Demand for Roses P P1P1 Q1Q1 D Q S

8. Valentine’s Day The Supply and Demand for Roses P P1P1 Q1Q1 D Q S D*

9. Valentine’s Day The Supply and Demand for Roses P P1P1 Q1Q1 D Q S D* P2P2 Q2Q2

10. Valentine’s Day There is a difference Both chocolate and roses cost more on Valentine’s Day

11. Valentine’s Day There is a difference Both chocolate and roses cost more on Valentine’s Day –Roses cost a lot more –Chocolate costs a little more

12. Valentine’s Day Why the Difference P Q D Candy P Q D Roses

13. Valentine’s Day Why the Difference P Q D Candy P Q D Roses D*

14. Valentine’s Day Why the Difference P Q D Candy P Q D Roses D* S S

15. Valentine’s Day Why the Difference P Q D Candy P Q D Roses D* S S Because candy is storable and roses are not, the supply functions have different slopes

16. Valentine’s Day Why the Difference P Q D Candy P Q D Roses D* S S PP PP

17. Valentine’s Day Lessons learned Simple supply and demand functions allow us to analyze this and many other problems in economics.

18. Valentine’s Day Lessons learned Simple supply and demand functions allow us to analyze this problem, as they do many problems in economics. The more we can tell something about the shape of supply and demand curves, the more we can say about the impacts of supply and demand shifts

19. Valentine’s Day End ©2003 Charles W. Upton