chap004supplyanddemand(m-grow-hill,微观经济学,王.pptVIP

Supply and Demand Chapter 4 Laugher Curve Q. What do you get when you cross the Godfather with an economist? A. An offer you cant understand. Demand Demand means the willingness and capacity to pay. Demand Prices are the tools by which the market coordinates individual desires. The Law of Demand Quantity demanded rises as price falls, other things constant. Quantity demanded falls as prices rise, other things constant. Thus, there is an inverse relationship between price and quantity demanded. The Law of Demand What accounts for the law of demand? The Demand Curve The demand curve is the graphic representation of the law of demand. The demand curve slopes downward and to the right. As the price goes up, the quantity demanded goes down. The Demand Curve The slope tells us that quantity demanded varies indirectly—in the opposite direction—with price. Other Things Constant Other things constant means that all other factors that affect the analysis are assumed to remain constant, whether they actually remain constant or not. These factors may include changing tastes, prices of other goods, even the weather. A Sample Demand Curve Shifts in Demand Versus Movements Along a Demand Curve Demand refers to a schedule of quantities of a good that will be bought per unit of time at various prices, other things constant. Graphically, it refers to the entire demand curve. Shifts in Demand Versus Movements Along a Demand Curve Quantity demanded refers to a specific amount that will be demand per unit of time at a specific price. Shifts in Demand Versus Movements Along a Demand Curve A movement along a demand curve is the graphical representation of the effect of a change in price on the quantity demanded. Shifts in Demand Versus Movements Along a Demand Curve A shift in demand is the graphical representation of the effect of anything other than price on demand. Change in Quantity Demanded Shift in Demand Shift Factors of Demand Shift factors of demand are those that cause shifts