管理经济学课件chapter_2.pptVIP

Chapter 1 Chapter 2 The Basics of Supply and Demand Topics to Be Discussed 1. Supply and Demand 2. The Market Mechanism 3. Changes in Market Equilibrium 4. Elasticities of Supply and Demand 5. Short-Run Versus Long-Run Elasticities Topics to Be Discussed 6. Understanding and Predicting theEffects of Changing Market Conditions 7. Effects of Government Intervention--Price Controls Supply The Supply Curve The supply curve shows how much of a good producers are willing to sell at a given price, holding constant other factors that might affect quantity supplied Supply The Supply Curve This price-quantity relationship can be shown by the equation: Supply Supply Other Variables that Affect Supply Technique (T) Number of enterprises (N) Price of Raw Materials (Pr) Price of Related Goods Substitutes (Ps) Complements (Pc) Expected price (Pe) Cost of Production Supply Substitutes goods: Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other. Complements goods: Two goods for which an increase in the price of one leads to a decrease in the quantity demanded of the other. Supply Pr decrease Ps increase Pc decrease T increase Pe decrease N increase Cp decrease Supply Supply - A Review Supply is determined by non-price supply-determining variables as such as the cost of labor, capital, and raw materials. Changes in supply are shown by shifting the entire supply curve as change in non-price supply-determining variables . Supply Supply - A Review Changes in quantity supplied are shown by movements along the supply curve and are caused by a change in the price of the product. Demand The Demand Curve The demand curve shows the relationship between the quantity of a good that the consumers are willing to buy and price of the good This price-quantity can be shown by the equation: Demand Demand Determining Variables of Demand Curve Income (M) Consumer