[经济学]MacroEconomic Ch 4 Market Forces of Supply and Demand.ppt

;Markets; ;;There are different types of market structures. A competitive market is one in which there are so many buyers and so many sellers that each has a negligible impact on the market price. A perfectly competitive market: all goods are exactly the same (homogeneous) buyers sellers so numerous that no one can affect the market price – each is a price taker In this chapter, we assume markets are perfectly competitive.;Demand;;Other Determinants of Demand;;;;;;;;The Demand for Ice Cream Cones;;;Market Demand for Ice Cream Cones;;A Change in Quantity Demanded;Change in Qd;Price;Change in Demand;Shifts in Demand;Price;Price;Price;Shift Factors for Demand;Change in Consumer Income;Price;;Increase in the price of a substitute;;Supply;;Other Determinants of Supply;Technology Advances in technology which reduce production costs will increase supply. Expectations If a firm expects selling P to increase in the future, it will hold off selling now and current supply will decrease. Number of Firms More firms in the market means more supply.;;;Market Supply of Ice Cream Cones;A Change in Quantity Supplied;Change in Qs;;A Change in Supply; If input prices increase, the supply curve shifts to the left (and vice versa). Advances in technology and an increase in the number of firms will shift the supply curve to the right. Expectations will shift supply according to the expectation. ;Shifts in Supply;;;;;;Equilibrium in the Ice Cream Market; Price;$2.00;Markets Not in Equilibrium;Price Above Equilibrium Price;$2.00;$2.00;$2.00;;Price Below Equilibrium Price;$2.00;$2.00;$2.00;;;;;How an Increase in Demand Affects Equilibrium; P*; P*; P*;;How a Decrease in Supply Affects Equilibrium; Price; P1; P1;Changes in Both Demand and Supply;A Shift in both D and S; P*; P*; P*;;Big supply shift, small demand shift; P*; P*; P*; P*;Using Equations ;;I’ll use the equation for Qs: Qs =