微观经济学英文课件chapter_2The Basics of Supply and Demand.ppt

Chapter 1 Chapter 2 The Basics of Supply and Demand Topics to Be Discussed Supply and Demand The Market Mechanism Changes in Market Equilibrium Elasticities of Supply and Demand Short-Run Versus Long-Run Elasticities Topics to Be Discussed Understanding and Predicting the Effects of Changing Market Conditions Effects of Government Intervention--Price Controls Introduction Applications of Supply and Demand Analysis Understanding and predicting how world economic conditions affect market price and production Analyzing the impact of government price controls, minimum wages, price supports, and production incentives Introduction Applications of Supply and Demand Analysis Analyzing how taxes, subsidies, and import restrictions affect consumers and producers Supply and Demand The Supply Curve The supply curve shows how much of a good producers are willing to sell at a given price, holding constant other factors that might affect quantity supplied Supply and Demand The Supply Curve This price-quantity relationship can be shown by the equation: Supply and Demand Supply and Demand Supply and Demand Non-price Determining Variables of Supply Costs of Production Labor Capital Raw Materials Supply and Demand The cost of raw materials falls At P1, produce Q2 At P2, produce Q1 Supply curve shifts right to S’ More produced at any price on S’ than on S Supply and Demand Supply - A Review Supply is determined by non-price supply-determining variables as such as the cost of labor, capital, and raw materials. Changes in supply are shown by shifting the entire supply curve. Supply and Demand Supply - A Review Changes in quantity supplied are shown by movements along the supply curve and are caused by a change in the price of the product. Supply and Demand The Demand Curve The demand curve shows how much of a good consumers are willing to buy as the price per unit changes holding non-price factors constant. This price-quantity relationship can be shown by the equation: Supply and Dem