tailieunhanh - Lecture Macroeconomics - Chapter 3: Individual markets: Demand and supply

Chapter 3 - Individual markets: Demand and supply. After studying this chapter you will be able to understand: What markets are, what demand is and what factors affect it, what supply is and what factors affect it, how demand and supply together determine market equilibrium. | CHAPTER 3 INDIVIDUAL MARKETS Demand & Supply SLIDES PREPARED BY JUDITH SKUCE, GEORGIAN COLLEGE S D q p In this chapter you will learn What markets are What demand is and what factors affect it What supply is and what factors affect it How demand and supply together determine market equilibrium CHAPTER 3 TOPICS MARKETS DEMAND SUPPLY SUPPLY & DEMAND: MARKET EQUILIBRIUM MARKETS HOW ARE PRICES DETERMINED IN A MARKET SYSTEM? .BY INTERACTION BETWEEN BUYERS SELLERS IN MARKETS BY MARKETS WE MEAN INSTITUTIONS THAT BRING TOGETHER BUYERS AND SELLERS MARKETS for example: corner gas station farmer’s market Toronto Stock Exchange etc. ASSUMPTIONS Competitive markets: many independent buyers & sellers standardized products CHAPTER 3 TOPICS MARKETS DEMAND SUPPLY SUPPLY & DEMAND: MARKET EQUILIBRIUM DEMAND a schedule or a curve that shows the various amounts consumers are willing and able to purchase at each of a series of possible prices, during some specified period of time DEMAND P Q d $ 1 $ 2 $ | CHAPTER 3 INDIVIDUAL MARKETS Demand & Supply SLIDES PREPARED BY JUDITH SKUCE, GEORGIAN COLLEGE S D q p In this chapter you will learn What markets are What demand is and what factors affect it What supply is and what factors affect it How demand and supply together determine market equilibrium CHAPTER 3 TOPICS MARKETS DEMAND SUPPLY SUPPLY & DEMAND: MARKET EQUILIBRIUM MARKETS HOW ARE PRICES DETERMINED IN A MARKET SYSTEM? .BY INTERACTION BETWEEN BUYERS SELLERS IN MARKETS BY MARKETS WE MEAN INSTITUTIONS THAT BRING TOGETHER BUYERS AND SELLERS MARKETS for example: corner gas station farmer’s market Toronto Stock Exchange etc. ASSUMPTIONS Competitive markets: many independent buyers & sellers standardized products CHAPTER 3 TOPICS MARKETS DEMAND SUPPLY SUPPLY & DEMAND: MARKET EQUILIBRIUM DEMAND a schedule or a curve that shows the various amounts consumers are willing and able to purchase at each of a series of possible prices, during some specified period of time DEMAND P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 The information can be presented in a demand schedule DEMAND DEMAND P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 quantity demanded The information can be presented in a demand schedule or graphed P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 © 2002 McGraw-Hill Ryerson Ltd. Chapter 3 or graphed P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 © 2002 McGraw-Hill Ryerson Ltd. Chapter 3 or graphed P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 © 2002 McGraw-Hill Ryerson Ltd. Chapter 3 or graphed P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 © 2002 McGraw-Hill Ryerson Ltd. Chapter 3 or graphed P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 © 2002 McGraw-Hill Ryerson Ltd. Chapter 3 or graphed P Q d $ 1 $ 2 $ 3 $ 4 $ 5 10 20 35 55 80 © 2002 McGraw-Hill Ryerson Ltd. Chapter 3 LAW OF DEMAND all else equal, as price falls, the quantity demanded rises (& vice versa) supported by: concept of diminishing marginal utility income effect substitution effect INDIVIDUAL VS. MARKET DEMAND