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Demand

Chapter 3: Demand and Supply. Demand. A Schedule Showing the. Amounts of a Good. Consumers are. Willing and Able to Purchase. At a Specified Set of Prices. During A Specified Period of Time. Price. D. Quantity/ unit of time. A Demand Schedule. Quantity Demanded. Price.

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Demand

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  1. Chapter 3: Demand and Supply Demand A Schedule Showing the Amounts of a Good Consumers are Willing and Able to Purchase At a Specified Set of Prices During A Specified Period of Time

  2. Price D Quantity/ unit of time

  3. A Demand Schedule Quantity Demanded Price Per Unit of Time $ 0 10 1 8 2 7 3 6 4 4 5 3 6 1

  4. 0,$10 1,$8 2,$7 3,$6 4,$4 5,$3 6,$1

  5. 0,$10 1,$8 2,$7 3,$6 Demand 4,$4 5,$3 6,$1

  6. Supply A Schedule Showing the Amounts of a Good Producers Are Willing and Able to Place on the Market At a Specified Set of Prices During A Specified Period of Time

  7. Price S Quantity/ unit of time

  8. A Supply Schedule Supplied Quantity Price Per Unit of Time $ 6 10 5 8 4 7 3 6 2 4 1 3 0 1

  9. 6,$10 5,$8 4,$7 3,$6 2,$4 1,$3 0,$1

  10. 5,$8 Supply 3,$6 2,$4 1,$3 0,$1

  11. Equilibrium Demand and Supply Conditions

  12. Equilibrium Conditions Quantity Quantity Price Supplied Demanded $ 10 0 6 8 1 5 7 2 4 Equilibrium 6 3 3 4 4 2 3 5 1 1 6 0

  13. 6,$10 0,$10 1,$8 5,$8 Supply 4,$7 2,$7 3,$6 Demand 4,$4 2,$4 1,$3 5,$3 6,$1 0,$1

  14. Price S D Quantity/ unit of time

  15. Price S Equilibrium Price & Quantity P* D Q* Quantity/ unit of time

  16. Price S P up, Q up P n P* D o 2 D 1 Quantity/ unit of time Q Q* n o Shift in Demand

  17. Price S P down, Q down P* o n P D 2 D 1 Q Q* Quantity/ unit of time n o Shift in Demand

  18. Shifters of the Demand Curve 1. Number of Consumers 2. Consumer Income 3. Consumer Tastes and Preferences 4. Consumer Expectations 5. Prices of Substitute And Complementary Goods

  19. Income increases Price Shift in Demand S P up, Q up P n P* D o 2 D 1 Quantity/ unit of time Q Q* n o

  20. Price Income Decreases S Shift in Demand P down Q down P* o P n D 1 D 2 Q Q* Quantity/ unit of time n o

  21. Shifters of the Supply Curve 1. Number of Producers 2. Costs of Production 3. Producer Expectations 4. Prices of Related Goods 5. Technology

  22. Price New Technology Shifts Supply Curve to S S o n the Right Price Down, Quantity Up P* o P n D Quantity/ unit of time Q Q o n

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