TAILIEUCHUNG - Lecture Principles of Microeconomics: Chapter 3 - James D. Miller

Chapter 3 - Supply and demand intertwined. After reading this chapter, you should be able to answer the following questions: How do supply and demand determine prices? What is equilibrium? What is surplus? What is shortage? What is the effect of a change in demand? What is the effect of a change in supply? | Chapter 3 Supply and Demand Intertwined McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. Learning Objectives How do supply and demand determine prices? What is equilibrium? What is surplus? What is shortage? What is the effect of a change in demand? What is the effect of a change in supply? 3- $P .45 Quantity of Apples Demand When Supply and Demand Intersect Supply Quantity supplied at Quantity demanded at 12,000 At $: Consumers want 12,000 apples. Firms want to produce 12,000 apples. Quantity demanded = Quantity supplied. Supply and demand intersect. = Equilibrium 3- $P .70 Quantity of Apples Demand Surplus Supply Quantity supplied at Quantity demanded at 10,000 14,600 At $: Consumers want 10,000 apples. Firms want to produce 14,600 apples. Quantity supplied > quantity demanded = Surplus. Price will fall. 3- $P .25 Quantity of Apples Demand Shortage Supply Quantity supplied at Quantity demanded at

• Kinh tế học
• Principles of Microeconomics
• Lecture Principles of Microeconomics
• Demand intersect
• Demand determine prices
• Change in demand
• Change in supply
• 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
• Law of demand
• Factors change demand
• Law of supply
• Market demand
• 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