(微观经济学英文课件)Chap-4-Supply-and-Demand

(微观经济学英文课件）Chap4SupplyandDemand(微观经济学英文课件）Chap4SupplyandD1Markets

Amarketisagroupofbuyersandsellersofaparticulargoodorservice.Inthischapter,weassumemarketisPerfectCompetition.Monopoly,Oligopoly,MonopolisticCompetitionMarketsAmarketisagroupof2Lesson1Demand1.definition2.DemandSchedule3.DemandCurve4.LawofDemand5.ChangeinQuantityDemandedversusChangeinDemand6.MarketDemandLesson1Demand1.definition31.definition

Quantitydemandedistheamountofagoodthatbuyersarewillingandabletopurchase.1.definition

Quantitydemanded42.DemandSchedule2.DemandSchedule5Thedemandscheduleisatable

thatshowstherelationship

betweenthe

price

ofthegood

andthe

quantity

demanded.

Thedemandscheduleisatable6$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones03.DemandCurve$3.002.502.001.501.000.50213457TheDemandCurveDThedemandcurveslopesdownward,demonstratingthatconsumersarewillingtobuymoreatalowerpriceastheproductbecomesrelativelycheaper.Quantity

Price($perunit)P2Q1P1Q2TheDemandCurveDThedemandcu8Measuresquantityonthex-axisandpriceonthey-axisMeasuresquantityonthex-axi94.LawofDemandThelawofdemandstatesthatthereisaninverserelationshipbetweenpriceandquantitydemanded.4.LawofDemandThelawofdema10CanyousummarizeotherdeterminantsofDemand?ConsumerincomeTastesExpectationsPricesofrelatedgoodsCanyousummarizeotherdeterm11relatedgoodsSubstitutesComplementsrelatedgoodsSubstitutes125.ChangeinQuantityDemandedversusChangeinDemand5.ChangeinQuantityDemanded13(1)ChangesinQuantityDemanded0D1PriceofCigarettesperPackNumberofCigarettesSmokedperDaySupposeataxthatraisesthepriceofcigarettesAC202.00$4.0012(1)ChangesinQuantityDemande14Movementalongthedemandcurve.Causedbyachangeinthe

price.Movementalongthedemandcurv15Causedbyachangeina determinantotherthantheprice.Ashiftinthedemandcurve,either totheleftorright.(2)ChangesinDemandCausedbyachangeina deter160D1PriceofIce-CreamConeQuantityofIce-CreamConesD3D2IncreaseindemandDecreaseindemand0D1PriceofIce-CreamConeQuan17suchas:ConsumerIncome

ifincomeincreasesthedemandforanormalgoodwillincrease.Butinferiorgoodwilldecrease.suchas:ConsumerIncomeifi18NormalGood$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones0IncreaseindemandAnincreaseinincome...D1D2NormalGood$3.002.502.001.501.19InferiorGood$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones0DecreaseindemandAnincreaseinincome...D1D2InferiorGood$3.002.502.001.5020Summary:VariablesresultPriceRepresentsamovementalongthedemandcurveConsumerIncomeShiftsthedemandcurvePricesofrelatedgoodsTastesExpectationsNumberofbuyersSummary:VariablesresultPriceRe216.MarketDemandMarketdemandreferstothesumofallindividualdemands.Graphically,individualdemandcurvesaresummedhorizontallytoobtainthemarketdemandcurve.6.MarketDemandMarketdemandr22

Thedemandfortomatoes(monthly)

Thedemandfortomatoes(mont23Lesson2:Supply1.definition2.SupplySchedule3.SupplyCurve4.LawofSupply5.ChangeinQuantitySuppliedversusChangeinSupply6.MarketSupplyLesson2:Supply1.definition241.definition

Quantitysupplied

istheamountofagoodthatsellersarewillingandabletosell.

1.definition

Quantitysupplied252.SupplySchedule2.SupplySchedule26The

supplyschedule

is

atablethatshowstherelationshipbetweenthepriceofthegoodandthequantitysupplied.Thesupplyscheduleisatable273.SupplyCurve$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones03.SupplyCurve$3.002.502.001.528The

supplycurve

istheupward-slopinglinerelatingpricetoquantitysupplied.

Thesupplycurveistheupward294.LawofSupplyThe

lawofsupply

statesthatthereisadirect(positive)relationshipbetweenpriceandquantity

supplied.4.LawofSupplyThelawofsupp30OtherdeterminantsofSupplyInputpricesTechnologyExpectationsNumberofproducersOtherdeterminantsofSupplyIn315.ChangeinQuantitySuppliedversusChangeinSupply5.ChangeinQuantitySupplied32(1)ChangeinQuantitySupplied1

5PriceofIce-CreamConeQuantityofIce-CreamCones0S

1.00AC$3.00Ariseinthepriceoficecreamcones(1)ChangeinQuantitySupplied33Movementalongthesupplycurve.Causedbyachangeinthemarketpriceoftheproduct.Movementalongthesupplycurv34(2)ChangeinSupplyPriceofIce-CreamConeQuantityofIce-CreamCones0S1S2S3IncreaseinSupplyDecreaseinSupply(2)ChangeinSupplyPriceofIc35Ashiftinthesupplycurve,eithertotheleftorright.

Causedbyachangeinadeterminantotherthanprice.Ashiftinthesupplycurve,e36summarysummary376.MarketSupplyMarketsupplyreferstothesumofallindividualsuppliesforallsellersofaparticulargoodorservice.Graphically,individualsupplycurvesaresummedhorizontallytoobtainthemarketsupplycurve.6.MarketSupplyMarketsupplyr38Lesson3:EquilibriumThecurvesintersectatequilibrium,ormarket-clearingLesson3:EquilibriumThecurve39SupplyandDemandTogetherDemandScheduleSupplyScheduleAt$2.00,thequantitydemandedisequaltothequantitysupplied!SupplyandDemandTogetherDema40SupplyDemandPriceofIce-CreamConeQuantityofIce-CreamConesEquilibriumof

SupplyandDemand2134567891012110$3.002.502.001.501.000.50EquilibriumSupplyDemandPriceofIce-Cream41surplusDSP0Q0P1SurplusQuantity

Price($perunit)QSQDsurplusDSP0Q0P1SurplusQuantity42SurplusWhenthepriceisabovetheequilibriumprice,thequantitysuppliedexceedsthequantitydemanded.Thereis

excesssupply

ora

surplus.

Supplierswilllowerthepricetoincreasesales,therebymovingtowardequilibrium.AtP1,priceisabovethemarketclearingpriceQs>QDPricefallstothemarket-clearingpriceMarketadjuststoequilibriumSurplusWhenthepriceisabove43shortageDSQSQDP2Quantity

Price($perunit)Q3P3ShortageshortageDSQSQDP2QuantityPrice44ShortageWhenthepriceisbelowtheequilibriumprice,thequantitydemandedexceedsthequantitysupplied.Thereis

excessdemand

ora

shortage.

Supplierswillraisethepriceduetotoomanybuyerschasingtoofewgoods,therebymovingtowardequilibrium.AtP2,priceisbelowthemarketclearingpriceQD>QSPricerisestothemarket-clearingpriceMarketadjuststoequilibriumShortageWhenthepriceisbelo45ThreeStepsToAnalyzingChangesinEquilibriumDecidewhethertheeventshiftsthesupplyordemandcurve(orboth).Decidewhetherthecurveshiftstotheleftortotheright.Examinethenewequilibrium.ThreeStepsToAnalyzingChang46?toicecreamHotweather?toicecreamHotweather47HowanIncreaseinDemandandsupplyPriceofIce-CreamCone2.0007QuantityofIce-CreamConesSupplyInitialequilibriumD11.Hotweatherincreasesthedemandforicecream...D22....resultinginahigherprice...$2.50103....andahigherquantitysold.NewequilibriumHarcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.HowanIncreaseinDemandand48WhatHappenstoPriceandQuantityWhenSupplyorDemandShifts?WhatHappenstoPriceandQuan49WhatHappenstoPriceandQuantityWhenSupplyorDemandShifts?WhatHappenstoPriceandQuan50exerciseTextbookP83exerciseTextbookP8651(微观经济学英文课件）Chap4SupplyandDemand(微观经济学英文课件）Chap4SupplyandD52Markets

Amarketisagroupofbuyersandsellersofaparticulargoodorservice.Inthischapter,weassumemarketisPerfectCompetition.Monopoly,Oligopoly,MonopolisticCompetitionMarketsAmarketisagroupof53Lesson1Demand1.definition2.DemandSchedule3.DemandCurve4.LawofDemand5.ChangeinQuantityDemandedversusChangeinDemand6.MarketDemandLesson1Demand1.definition541.definition

Quantitydemandedistheamountofagoodthatbuyersarewillingandabletopurchase.1.definition

Quantitydemanded552.DemandSchedule2.DemandSchedule56Thedemandscheduleisatable

thatshowstherelationship

betweenthe

price

ofthegood

andthe

quantity

demanded.

Thedemandscheduleisatable57$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones03.DemandCurve$3.002.502.001.501.000.502134558TheDemandCurveDThedemandcurveslopesdownward,demonstratingthatconsumersarewillingtobuymoreatalowerpriceastheproductbecomesrelativelycheaper.Quantity

Price($perunit)P2Q1P1Q2TheDemandCurveDThedemandcu59Measuresquantityonthex-axisandpriceonthey-axisMeasuresquantityonthex-axi604.LawofDemandThelawofdemandstatesthatthereisaninverserelationshipbetweenpriceandquantitydemanded.4.LawofDemandThelawofdema61CanyousummarizeotherdeterminantsofDemand?ConsumerincomeTastesExpectationsPricesofrelatedgoodsCanyousummarizeotherdeterm62relatedgoodsSubstitutesComplementsrelatedgoodsSubstitutes635.ChangeinQuantityDemandedversusChangeinDemand5.ChangeinQuantityDemanded64(1)ChangesinQuantityDemanded0D1PriceofCigarettesperPackNumberofCigarettesSmokedperDaySupposeataxthatraisesthepriceofcigarettesAC202.00$4.0012(1)ChangesinQuantityDemande65Movementalongthedemandcurve.Causedbyachangeinthe

price.Movementalongthedemandcurv66Causedbyachangeina determinantotherthantheprice.Ashiftinthedemandcurve,either totheleftorright.(2)ChangesinDemandCausedbyachangeina deter670D1PriceofIce-CreamConeQuantityofIce-CreamConesD3D2IncreaseindemandDecreaseindemand0D1PriceofIce-CreamConeQuan68suchas:ConsumerIncome

ifincomeincreasesthedemandforanormalgoodwillincrease.Butinferiorgoodwilldecrease.suchas:ConsumerIncomeifi69NormalGood$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones0IncreaseindemandAnincreaseinincome...D1D2NormalGood$3.002.502.001.501.70InferiorGood$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones0DecreaseindemandAnincreaseinincome...D1D2InferiorGood$3.002.502.001.5071Summary:VariablesresultPriceRepresentsamovementalongthedemandcurveConsumerIncomeShiftsthedemandcurvePricesofrelatedgoodsTastesExpectationsNumberofbuyersSummary:VariablesresultPriceRe726.MarketDemandMarketdemandreferstothesumofallindividualdemands.Graphically,individualdemandcurvesaresummedhorizontallytoobtainthemarketdemandcurve.6.MarketDemandMarketdemandr73

Thedemandfortomatoes(monthly)

Thedemandfortomatoes(mont74Lesson2:Supply1.definition2.SupplySchedule3.SupplyCurve4.LawofSupply5.ChangeinQuantitySuppliedversusChangeinSupply6.MarketSupplyLesson2:Supply1.definition751.definition

Quantitysupplied

istheamountofagoodthatsellersarewillingandabletosell.

1.definition

Quantitysupplied762.SupplySchedule2.SupplySchedule77The

supplyschedule

is

atablethatshowstherelationshipbetweenthepriceofthegoodandthequantitysupplied.Thesupplyscheduleisatable783.SupplyCurve$3.002.502.001.501.000.50213456789101211PriceofIce-CreamConeQuantityofIce-CreamCones03.SupplyCurve$3.002.502.001.579The

supplycurve

istheupward-slopinglinerelatingpricetoquantitysupplied.

Thesupplycurveistheupward804.LawofSupplyThe

lawofsupply

statesthatthereisadirect(positive)relationshipbetweenpriceandquantity

supplied.4.LawofSupplyThelawofsupp81OtherdeterminantsofSupplyInputpricesTechnologyExpectationsNumberofproducersOtherdeterminantsofSupplyIn825.ChangeinQuantitySuppliedversusChangeinSupply5.ChangeinQuantitySupplied83(1)ChangeinQuantitySupplied1

5PriceofIce-CreamConeQuantityofIce-CreamCones0S

1.00AC$3.00Ariseinthepriceoficecreamcones(1)ChangeinQuantitySupplied84Movementalongthesupplycurve.Causedbyachangeinthemarketpriceoftheproduct.Movementalongthesupplycurv85(2)ChangeinSupplyPriceofIce-CreamConeQuantityofIce-CreamCones0S1S2S3IncreaseinSupplyDecreaseinSupply(2)ChangeinSupplyPriceofIc86Ashiftinthesupplycurve,eithertotheleftorright.

Causedbyachangeinadeterminantotherthanprice.Ashiftinthesupplycurve,e87summarysummary886.MarketSupplyMarketsupplyreferstothesumofallindividualsuppliesforallsellersofaparticulargoodorservice.Graphically,individualsupplycurvesaresummedhorizontallytoobtainthemarketsupplycurve.6.MarketSupplyMarketsupplyr89Lesson3:EquilibriumThecurvesintersectatequilibrium,ormarket-clearingLesson3:EquilibriumThecurve90SupplyandDemandTogetherDemandScheduleSupplyScheduleAt$2.00,thequantitydemandedisequaltothequantitysupplied!SupplyandDemandTogetherDema91SupplyDemandPriceofIce-CreamConeQuantityofIce-CreamConesEquilibriumof

SupplyandDemand2134567891012110$3.002.502.001.501.000.50EquilibriumSupplyDemandPriceofIce-Cream92surplusDSP0Q0P1SurplusQuantity

Price($perunit)QSQDsurplusDSP0Q0P1SurplusQuantity93SurplusWhenthepriceisabovetheequilibriumprice,thequantitysuppliedexceedsthequantitydemanded.Thereis

excesssupply

ora

surplus.

Supplierswilllowerthepricetoincreasesales,therebymovingtowardequilibrium.AtP1,priceisabovethemarketclearingpriceQs>QDPrice