1. Copyright © 2011 Cengage Learning 4 The Market Forces of Supply and Demand

2. Copyright © 2010 Cengage Learning Figure 1 Sabine’s Demand Schedule and Demand Curve Copyright © 2011 Cengage Learning

3. Copyright © 2010 Cengage Learning Figure 2 Market Demand as the Sum of Individual Demands Copyright © 2011 Cengage Learning

4. Figure 3 Shifts in the Demand Curve Price of ice cream cornets Quantity of ice cream cornets Increase in demand Decrease in demand Demand curve,D 3 Demand curve,D 1 Demand curve,D 2 0 Copyright © 2011 Cengage Learning

5. Table 1 Variables That Influence Buyers Copyright © 2011 Cengage Learning

6. Copyrigt©2010 CengageCopyright © 2011 Cengage Figure 4 Shifts in the Demand Curve versus Movements Along the Demand Curve Copyright © 2011 Cengage Learning

7. Copyrigt©2010 CengageCopyright © 2011 Cengage Figure 5 Häagen’s Supply Schedule and Supply Curve Copyright © 2011 Cengage Learning

8. Copyrigt©2010 CengageCopyright © 2011 Cengage Figure 6 Market Supply as the Sum of Individual Supplies Copyright © 2011 Cengage Learning

9. Figure 7 Shifts in the Supply Curve Price of ice cream cornets Quantity of ice cream cornets 0 Increase in supply Decrease in supply Supply curve,S 3 curve, Supply S 1 curve,S 2 Copyright © 2011 Cengage Learning

10. Table 2 Variables That Influence Sellers Copyright © 2011 Cengage Learning

11. Figure 8 The Equilibrium of Supply and Demand Price of ice cream cornets 0123456789101112 Quantity of ice cream cornets 13 Equilibrium quantity Equilibrium price Equilibrium Supply Demand € 2.00 Copyright © 2011 Cengage Learning

12. Figure 9 Markets Not in Equilibrium (1) Price of ice cream cornets 0 Supply Demand (a) Excess supply Quantity demanded Quantity supplied Surplus Quantity of ice cream cornets 4 € 2.50 10 2.00 7 Copyright © 2011 Cengage Learning

13. Figure 9 Markets Not in Equilibrium (2) Shortage Price of ice cream cornets 0 Supply Demand (b) Excess demand Quantity supplied Quantity demanded Quantity of ice cream cornets 4 € 2.00 10 1.50 7 Copyright © 2011 Cengage Learning

14. Copyright © 2010 Cengage Learning Equilibrium Surplus When price > equilibrium price, then quantity supplied > quantity demanded. There is excess supply or a surplus. Suppliers will lower the price to increase sales, thereby moving toward equilibrium. Copyright © 2011 Cengage Learning

15. Table 3 A Three-Step Programme for Analysing Changes in Equilibrium Copyright © 2011 Cengage Learning

16. Figure 10 How an Increase in Demand Affects the Equilibrium Price of ice cream cornets 0 Quantity of ice cream cornets Supply Initial equilibrium D D 3....and a higher quantity sold. 2.... resulting in a higher price... 1. Hot weather increases the demand for ice cream... 2.00 7 New equilibrium € 2.50 10 Copyright © 2011 Cengage Learning

17. Figure 11 How a Decrease in Supply Affects the Equilibrium Price of ice cream Cone 0 Quantity of ice cream Cones Demand New equilibrium Initial equilibrium S1S1 S2S2 2.... resulting in a higher price of ice cream... 1. An increase in the price of sugar reduces the supply of ice cream... 3....and a lower quantity sold. 2.00 7 € 2.50 4 Copyright © 2011 Cengage Learning

18. Copyright © 2010 Cengage Learning Figure 12 A Shift in Both Supply and Demand (i) (1) Copyright © 2011 Cengage Learning

19. Copyright © 2010 Cengage Learning Figure 12 A Shift in Both Supply and Demand (i) (2) Copyright © 2011 Cengage Learning

20. Copyright © 2010 Cengage Learning Figure 13 A Shift in Both Supply and Demand (ii) (1) Copyright © 2011 Cengage Learning

21. Copyright © 2010 Cengage Learning Figure 13 A Shift in Both Supply and Demand (ii) (2) Copyright © 2011 Cengage Learning

22. Copyright © 2010 Cengage Learning Figure 13 A Shift in Both Supply and Demand (ii) (3) Copyright © 2011 Cengage Learning

23. Table 4 What Happens to Price and Quantity When Supply or Demand Shifts? Copyright © 2011 Cengage Learning