4 market_forces(英).pptVIP

4 The Market Forces of Supply and Demand Learning Objectives what a competitive market is. what determines the demand for / the supply of a good in a competitive market. how supply and demand together set the price of a good and the quantity sold. the key role of prices in allocating scarce resources in market economies. Supply and demand are the two words that economists use most often. Supply and demand are the forces that make market economies work. Modern microeconomics is about supply, demand, and market equilibrium. Outline 市场与竞争(Market and Competition) 需求（Demand） 供给（ Supply ） 供给与需求的结合（Equilibrium） Case study Summary 案例分析 我国前几年房价为何上涨？最近房价为何下跌？降息会对房价带来怎样的影响？ MARKETS AND COMPETITION A market is a group of buyers and sellers of a particular good or service. The terms supply and demand refer to the behavior of people . . . as they interact with one another in markets. MARKETS AND COMPETITION Buyers determine demand. Sellers determine supply Competitive Markets A competitive market is a market in which there are many buyers and sellers so that each has a negligible impact on the market price. Competition: Perfect and Otherwise Perfect Competition Products are the same Numerous buyers and sellers so that each has no influence over price Buyers and Sellers are price takers Monopoly One seller, and seller controls price Competition: Perfect and Otherwise Oligopoly Few sellers Not always aggressive competition Monopolistic Competition Many sellers Slightly differentiated products Each seller may set price for its own product DEMAND Quantity demanded is the amount of a good that buyers are willing and able to purchase. Law of Demand The law of demand states that, other things equal, the quantity demanded of a good falls when the price of the good rises. The Demand Curve: The Relationship between Price and Quantity Demanded Demand Schedule The demand schedule is a table that shows the relationship between the price of the good and the quantity demanded.