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DEMAND, SUPPLY, and MARKET EQUILIBRIUM Appendix ( chapter 3 )

DEMAND, SUPPLY, and MARKET EQUILIBRIUM Appendix ( chapter 3 ). A market demand curve shows the relationship between the quantity demanded and price, ceteris paribus. Equilibrium in a market is shown by the intersection of the demand curve and the supply curve.

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DEMAND, SUPPLY, and MARKET EQUILIBRIUM Appendix ( chapter 3 )

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  1. DEMAND, SUPPLY,andMARKET EQUILIBRIUMAppendix(chapter 3)

  2. A market demand curve shows therelationship between the quantitydemanded and price, ceteris paribus. Equilibrium in a market is shown by the intersection ofthe demand curve and the supply curve. When a marketreaches equilibrium, there is no pressure to change theprice. A market supply curve shows therelationship between the quantitysupplied and price, ceterisparibus.

  3. Increases in Demand Shift the Demand Curve

  4. Decreases in Demand Shift the Demand Curve

  5. Increases in Supply Shift the Supply Curve

  6. Decreases in Supply Shift the Supply Curve

  7. A change in demand changes price and quantity in the samedirection: An increase in demand increases the equilibriumprice and quantity; a decrease in demand decreases theequilibrium price and quantity. A change in supply changes price and quantity in oppositedirections: An increase in supply decreases price andincreases quantity; a decrease in supply increases price anddecreases quantity.

  8. Predıctıng And Explaınıng Market Changes

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