TAILIEUCHUNG - Lecture Principles of Microeconomics: Chapter 2 - James D. Miller

Chapter 2 - Introducing supply and demand. After reading this chapter, you should be able to answer the following questions: What is demand? What is law of demand? What factors change demand? What is supply? What is law of supply? What factors change supply? | Chapter 2 Introducing Supply and Demand McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. A Tale of a Desert When water is free of charge: Miners consume lots of water. Government is the only supplier of water. When price of water is high: Miners conserve and use less water. Private sellers find new ways to sell more water. 2- Learning Objectives What is demand? What is law of demand? What factors change demand? What is supply? What is law of supply? What factors change supply? 2- Demand Demand = How much consumers buy at various prices 2- Quantity Demanded vs. Demand Quantity demanded = The number of units consumers purchase at a specific price over a specific time period. Demand = The entire relationship between price and quantity demanded over a specific time period. 2- Price Quantity Demanded $.05 30,000 $.10 24,000 $.15 18,000 $.20 12,000 $.25 6,000 Demand for Apples $P .30 .25 .20 .15 .10 .05 .00 0 10 20 30 40 Quantity of

• Kinh tế học
• Principles of Microeconomics
• Lecture Principles of Microeconomics
• Law of demand
• Factors change demand
• Law of supply
• Market demand
• Ten principles of economics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Market forces
• Supply and demand
• Market economies
• Competitive markets
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Market failures
• Negative externalities
• Positive externalities
• Market inefficiency
• Public goods
• Common resources
• Types of goods
• Cost benefit analysis
• Tax system
• Federal government
• Marginal tax rate
• Budget surplus
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Firms in competitive markets
• Average revenue
• Marginal revenue
• Sunk costs
• Monopoly resources
• Government created monopolies
• Natural monopolies
• Monopoly’s revenue
• Monopolistic competition
• Nash equilibrium
• Equilibrium for oligopoly
• Game theory
• Long run equilibrium
• Perfect competition
• Production possibility frontier
• Opportunity cost
• Rational people
• Indirect effects
• Demand intersect
• Demand determine prices
• Change in demand
• Change in supply
• Elastic demand curve
• Policy analysis with supply
• Policy analysis with demand
• Wealth creation
• Production cost
• Total surplus
• International trade
• Additional benefits of trade
• Average costs
• Break even price
• Increasing marginal costs
• Long run analysis
• Firms profit graphically
• Accounting profit
• Market effectiveness
• Monopolist pricing
• Price discrimination
• Antitrust laws
• Disruptive innovation in oligopolies
• Predatory pricing