1. SUPPLY AND DEMAND

2. DEMAND CURVE QUANTITY 0 D D Price Quantity PRICE

3. DEMAND CONCEPTS  Prices as signals  The law of demand Prices Quantity  Other factors & demand Income Tastes and preferences Prices of other goods PRICE QUANTITY

4. SUPPLY  Supply Curve Quantity Price 0 S S Price Quantity

5. SUPPLY  Supply Concepts The law of supply  Price Quantity Other factors & supply  Technology  Prices of resources

6. The Equilibrium or Market Price Quantity Price 0 S S D D Excess Supply Excess Demand Equilibrium

7. Supply & Demand Schedule for Gasoline Price Supply Demand $2.501560 2.752050 3.002540 Excess Demand 3.253030 Demand=Supply 3.503520 Excess Supply 3.754010

8. Price Quantity 0 10 20 30 40 50 60 70 3.75 3.50 3.25 3.00 2.75 2.50 2.25 D D S S SUPPLY AND DEMAND Excess supply Excess demand Equilibrium

9. MINIMUM WAGE LAWS # of Workers WAGE D DS S Market Wage Equilibrium # of Workers $7

10. MINIMUM WAGE LAWS # of Workers WAGE D DS S Market Wage Additional Unemployment $7 $8 Minimum Wage