《经济学EconomicsforToday3E3教学文案》由会员分享，可在线阅读，更多相关《经济学EconomicsforToday3E3教学文案（28页珍藏版）》请在金锄头文库上搜索。
1、,Chapter 3,Market demand and supply,Key concepts,Defining demand Changes to demand if price or other factors change Defining supply Changes to supply if prices or other factors change. Defining market equilibrium Understanding and explaining the causes and changes in market equilibrium,3,4,The law o
2、f demand,There is an inverse relationship between the price of a good and the quantity buyers are willing to purchase in a defined time period, ceteris paribus. A demand schedule (table) shows the specific quantity of a good or service that people are willing and able to buy at different prices. The
3、 demand curve shows the relationship between price and quantity demanded.,6,An inverse relationship,At the higher price consumers will buy fewer units, and at a lower price they will buy more units.,7,Individual demand curves,Line up the price levels so Y-axis is the same scale.,8,Market demand,Mark
4、et demand is the horizontal summation of individual demand schedules.,9,If price changes,When price changes, quantity demanded changes. There is a movement along the demand curve.,10,If non-price factors change,This is known as a change in demand. That is, the demand curve shifts. Rightward shift in
5、dicates demand increasing.,Non-price determinants of demand,Changes in demand are brought about when the following non-price determinants of demand change: number of buyers in the market tastes and preferences income expectations of buyers prices of related goods.,11,Impact of changes in non-price d
6、eterminants,12,13,Summary: demand,If own price increases, there is a decrease in the quantity demanded a leftward movement long the demand curve. If own price falls, there is an increase in the quantity demanded. A favourable change in a non-price factor causes an increase in demand a rightward shif
7、t of the whole curve. An unfavourable change in a non-price factor causes a decrease in demand.,14,The law of supply,There is a direct relationship between the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus. The supply schedule (table
8、) shows the quantity of a good or service that firms are willing and able to offer for sale at different prices. The supply curve depicts the relationship between price and quantity supplied.,15,An individual sellers supply curve for DVDs,Note that the supply curve has a positive slope.,16,A positiv
9、e relationship,At a higher price, sellers will offer more units for sale, as it is more profitable for sellers to supply more at higher prices.,17,Individual supply curves,Line up the price levels so Y-axis is the same scale.,18,Market supply,Market supply is the horizontal summation of individual s
10、upply schedules in the market.,19,Changes in quantity supplied,If the price changes, quantity supplied changes. This is a movement along the supply curve.,20,Changes in supply,A change in non-price factors is known as a change in supply; i.e., the supply curve shifts. Rightward shift indicates suppl
11、y increasing.,Non-price determinants of supply,Changes in supply are brought about when the following non-price determinants of supply change: number of sellers in the market technology available input prices taxes and subsidies expectations of producers prices of other goods the firm could produce.
12、,21,22,Impacts of changes in non-price determinants,23,Summary: supply,If own price increases, there is a decrease in the quantity supplied a leftward movement along the supply curve. If own price falls, there is an increase in the quantity supplied. A favourable change in a non-price factor causes
13、an increase in supply a rightward shift of the whole curve. An unfavourable change in a non-price factor causes a decrease in supply.,24,Market supply and demand,A market exists where interaction amongst buyers and sellers determines the price and quantity of goods and services exchanged. This is of
14、ten called the price system the forces of supply and demand create market equilibrium.,25,Equilibrium,A market condition that occurs at any price for which the quantity demanded and the quantity supplied are equal. Equilibrium is the point of balance between demand and supply in the market.,Supply a
15、nd demand for jeans,26,27,Market forces bring change,At any price other than the equilibrium price, market forces act to bring the market into balance. In a surplus there is excess supply: sellers compete for buyers by cutting their selling price. In a shortage there is excess demand: potential customers try to attain the available goods by paying a higher price.,28,Summary: equilibrium,At equilibrium there is an efficient outcome. This is also referred to as market clearing as society maximises the benefits it receives from scarce resources.,
