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Supply and Demand: Market Equilibrium and Price Effects

Explore the concept of market equilibrium, supply and demand dynamics, price ceilings and price floors, and the effects of double shifts on the price and quantity of goods.

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Supply and Demand: Market Equilibrium and Price Effects

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  1. Unit 2: Supply & Demand Together!!!

  2. Market Equilibrium = Q.D. = Q.S. Price Price Price S S 23 D D 15 Quantity Quantity Quantity

  3. Shortage Surplus Demand > Supply Supply > Demand Price Price S S D D Quantity Quantity

  4. Price Ceiling Cannot Sell Above It Effective Non-Effective Price Price P.C. P.C. Quantity Quantity

  5. Price Floor Cannot Sell Below It Non-Effective Effective Situations Price Price P.F. P.F. Quantity Quantity

  6. Double Shifts Chocolate Milk is proven to cure cancer; however, half of the population of cows die from mad cow disease. How does this information affect the price and quantity of chocolate milk? Price S D Quantity

  7. Double Shifts Pho is proven to increase the rates of heart attacks, and three new Pho restaurants open in the area. How would this information affect the price and quantity of Pho? Price S D Quantity

  8. Double Shifts The price of chips increases, and 3 factories that produce salsa blew up at the same time. How would this information affect the price and quantity of salsa? Price S D Quantity

  9. Double Shifts Chicken farms invented faster method to raise chickens; more than half million Chinese immigrate to the city.How does this information affect the price and quantity of orange chicken? Price S D Quantity

  10. Use a S&D to explain this double shift 13

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