微观经济学原理曼昆英文第四章.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * A C T I V E L E A R N I N G 2 Supply Curve * Draw a supply curve for tax return preparation software. What happens to it in each of the following scenarios? A. Retailers cut the price of the software. B. A technological advance allows the software to be produced at lower cost. C. Professional tax return preparers raise the price of the services they provide. THE MARKET FORCES OF SUPPLY AND DEMAND * P Q Supply and Demand Together D S Equilibrium: P has reached the level where quantity supplied equals quantity demanded 0 THE MARKET FORCES OF SUPPLY AND DEMAND * D S P Q Equilibrium price: P QD QS $0 24 0 1 21 5 2 18 10 3 15 15 4 12 20 5 9 25 6 6 30 the price that equates quantity supplied with quantity demanded 0 THE MARKET FORCES OF SUPPLY AND DEMAND * D S P Q Equilibrium quantity: P QD QS $0 24 0 1 21 5 2 18 10 3 15 15 4 12 20 5 9 25 6 6 30 the quantity supplied and quantity demanded at the equilibrium price 0 THE MARKET FORCES OF SUPPLY AND DEMAND * P Q D S Surplus (a.k.a. excess supply): when quantity supplied is greater than quantity demanded Surplus Example: If P = $5, then QD = 9 lattes and QS = 25 lattes resulting in a surplus of 16 lattes 0 THE MARKET FORCES OF SUPPLY AND DEMAND * P Q D S Surplus (a.k.a. excess supply): when quantity supplied is greater than quantity demanded Facing a surplus, sellers try to increase sales by cutting price. This causes QD to rise Surplus …which reduces the surplus. and QS to fall… 0 THE MARKET FORCES OF SUPPLY AND DEMAND * P Q D S Surplus (a.k.a. excess supply): when quantity supplied is greater than quantity demanded Facing a surplus, sellers try to increase sales by cutting price. This causes QD to rise and QS to fall. Surplus Prices continue to fall until market reaches equilibrium. 0 THE MARKET FORCES OF SU