Principles of Economics Third Edition by Fred Gottheil弗莱德Gottheil经济学原理第三版.pptVIP

Chapter 3 Demand and Supply Economic Principles Individual and Market Demand Market-day, Short-run and Long-run Supply Determination of Equilibrium Price and Quantity Price Formation Measuring Consumer Demand Measuring Individual Demand Measuring Individual Demand Measuring Market Demand Measuring Market Demand Market Demand The sum of all individuals demand in a market. Measuring Supply Measuring Supply Measuring Supply Measuring Supply Measuring Supply Exhibit 2: The Market Demand Curve Exhibit 3: Market-Day Supply Curve Exhibit 4: Excess Demand and Excess Supply Excess Supply The difference, at a particular price, between quantity supplied and quantity demanded, quantity supplied being the greater. What will suppliers do if there is excess supply? Excess Demanded The difference, at a particular price, between quantity demanded and quantity supplied, quantity demanded being greater. What will suppliers do if there is excess demand? Exhibit 4: Excess Demand and Excess Supply Exhibit 4: Excess Demand and Excess Supply Exhibit 4: Excess Demand and Excess Supply Determining Equilibrium Price Excess Supply What will suppliers do if there’s an excess supply on the market? An incentive for suppliers to cut prices. Equilibrium The price that equates quantity demanded to quantity supplied. If any disturbance from that price occurs, excess demanded or excess supply emerges to drive price back to equilibrium. Price always tends toward equilibrium. Exhibit 5: Market-Day, Short-Run, and Long-Run Supply Short-Run The time interval during which suppliers are able to change the quantity of some but not all resources they use to produce the goods and services. Long Run The time interval during which suppliers are able to change the quantity of all the resources they use to produ