经原学习重点和难点fromch3..docxVIP

Chapter3 basic elements of supply and demandTheory of supply and demandShows how consumer preferences（偏好） determine consumer demand for commodities, while business costs are the foundation of the supply of commodities.（商品）Competitive（竞争的） equilibrium（均衡）The demand curves and the supply curves intersect（交叉）—the forces of demand and supply are just in balance.DEMANDThe demand schedule (the demand curve)The relationship between price and quantity bought. Demand curveThe graphical（图示的） representation of the demand scheduleLaw of downward-sloping demand 需求向下倾斜规律When the price of a commodity is raised (and other things are held constant), buyers tend to buy less of the commodity.Substitution effectWhen the price of a good rises, people will substitute other similar goods for it.Income effectWhen a price goes up, people find themselves somewhat poorer than they were before. They have in effect less real income.Market demandRepresents the sum total of all individual demandsA array of factors that influences how much will be demanded at a given price—determines the market demand:1. Objective elements:1.1 Average levels of income: people tend to buy more of almost everything when their incomes rise, even if prices don’t change.1.2 Size of the market: measured by population, 10 people tend to buy more than 1 people.1.3 The prices and availability of related goods: demand for oil tends to be low if the price of natural gas is low. (substitute product)2. Subjective（主观的） elements:2.1 Tastes2.2 Preferences3. Special influences: the demand for umbrellas is high in rainy city but low in sunny city. Expectations about future economic conditions, particularly pricesSUPPLYThe supply schedule (or supply curve) for a commodityShows the relationship between its market price and the amount of that commodity that producers are willing to produce and sell, other things held constant.Elements that affect the supply curve:1. Cost of productionOne major element underlying the supply curve, whic