微观经济学英文课件：03 Where Prices Come From The Interaction of Demand and Supply

1、Where Prices Come From:The Interaction of Demand and Supply,2 of 34,After studying this chapter, you should be able to: Discuss the variables that influence demand. Discuss the variables that influence supply. Use a graph to illustrate market equilibrium. Use demand and supply graphs to predict chan

2、ges in prices and quantities.,Carly Fiorina,How Hewlett-Packard Managesthe Demand for Printers,LEARNING OBJECTIVES, Because of the importance of printers to Hewlett-Packard, the company devotes significant resources to monitoring and forecasting consumer demand.,3 of 34,The Demand Side of the Market

3、,The Demand of an Individual Buyer,Quantity demanded The quantity of a good or service that a consumer is willing to purchase at a given price.,3 - 1,At a price of $125 per printer, Kate, the purchasing manager for the Prudential Insurance Company, will be willing to buy 5 printers in the next month

4、.,4 of 34,The Demand Side of the Market,Demand schedule A table showing the relationship between the price of a product and the quantity of the product demanded.,Demand curve A curve that shows the relationship between the price of a product and the quantity of the product demanded.,Demand Schedules

5、 and Demand Curves,3 - 2,5 of 34,The Demand Side of the Market,Individual Demand and Market Demand,Market demand The demand for a product by all the consumers in a given geographical area.,3 - 3,6 of 34,The Demand Side of the Market,The Law of DemandThe Law of Demand Holding everything else constant

6、, when the price of a product falls, the quantity demanded of the product will increases, and when the price of a product rises, the quantity demanded of the product will decrease. What Explains the Law of Demand?Substitution effect The change in the quantity demanded of a good that results from a c

7、hange in price making the good more or less expensive relative to other goods that are substitutes.Income effect The change in the quantity demanded of a good that results from the effect of a change in the goods price on consumer purchasing power.,7 of 34,The Demand Side of the Market,Holding Every

8、thing Else Constant:The Ceteris Paribus ConditionCeteris paribus (“all else equal”) The requirement that when analyzing the relationship between two variablessuch as price and quantity demandedother variables must be held constant.,8 of 34,The Demand Side of the Market,Price of related goods Substit

9、utes Goods and services that can be used for the same purpose.Complements Goods that are used together. Income Normal good A good for which the demand increases as income rises and decreases as income falls.Inferior good A good for which the demand increases as income falls, and decreases as income

10、rises. Tastes Population and demographics Demographics The characteristics of a population with respect to age, race, and gender. Expected future prices,Variables That Shift Market Demand,3 - 4,9 of 34,Why Supermarkets Need to Understand Substitutes and Complements,3 - 1,A supermarket shouldnt remov

11、e a slow-selling soup from its shelves without researching whether shoppers use that soup as a substitute or a complement for another soup.,10 of 34,Are Big Macs an Inferior Good?,McDonalds restaurants experienced increased sales during 2008 and 2009, despite the recession.,Big Macs seem to fit the

12、economic definition of an inferior good because demand increased as income fell. But remember that inferior goods are not necessarily of low quality, they are just goods for which consumers increase their demand as their incomes fall.,YOUR TURN: Test your understanding by doing related problem 1.8 a

13、t the end of this chapter.,Discuss the variables that influence demand.,3.1 LEARNING OBJECTIVE,11 of 34,Companies Respond to a Growing Hispanic Population,3 - 2,Firms are responding to the tastes of a growing Hispanic population. Some Home Depot stores, for example, include signs in both English and

14、 Spanish.,12 of 34,The Aging of the Baby Boom Generation,What effects will the aging of the baby boom generation have on the economy? Older people have a greater demand for medical care than do younger people. Aging boomers will also have an effect on the housing market.,YOUR TURN: Test your underst

15、anding by doing related problem 1.9 at the end of this chapter.,Discuss the variables that influence demand.,3.1 LEARNING OBJECTIVE,13 of 34,The Demand Side of the Market,Variables That Shift Market Demand,3 - 1,14 of 34,The Demand Side of the Market,Variables That Shift Market Demand,3 - 1 (continu

16、ed),15 of 34,The Demand Side of the Market,A Change in Demand versus a Change in Quantity Demanded,3 - 5,16 of 34,Estimating the Demand for Printers at Hewlett-Packard,3 - 3,Inaccurate forecasts in 2001 caused Hewlett-Packard to produce more printers than they could sell.,17 of 34,Red Bull and the F

17、utureDemand for Energy Drinks,Will Red Bull continue to grow its share of the energy drink market?,It is important for managers to accurately forecast the demand for their products because it helps them determine how much of a good to produce.,YOUR TURN: Test your understanding by doing related prob

18、lem 1.11 at the end of this chapter.,Discuss the variables that influence demand.,3.1 LEARNING OBJECTIVE,18 of 34,The Supply Side of the Market,Quantity supplied The quantity of a good or service that a firm is willing to supply at a given price.,Supply schedule A table that shows the relationship b

19、etween the price of a product and the quantity of the product supplied.,Supply curve A curve that shows the relationship between the price of a product and the quantity of the product demanded.,Supply Schedules and Supply Curves,19 of 34,The Supply Side of the Market,3 - 6,20 of 34,The Supply Side o

20、f the Market,Individual Supply and Market Supply,3 - 7,21 of 34,The Supply Side of the Market,The Law of Supply,Law of supply Holding everything else constant, increases in price cause increases in the quantity supplied, and decreases in price cause decreases in the quantity supplied.,22 of 34,The S

21、upply Side of the Market,Price of inputs Technological change A positive or negative change in the ability of a firm to produce a given level of output with a given amount of inputs. Prices of substitutes in production Expected future prices Number of firms in the market,Variables That Shift Supply,

22、3 - 8,23 of 34,The Supply Side of the Market,Variables That Shift Supply,3 - 2,24 of 34,The Supply Side of the Market,Variables That Shift Supply,3 - 2 (continued),25 of 34,The Supply Side of the Market,A Change in Supply versus a Change in Quantity Supplied,3 - 9,26 of 34,Market Equilibrium: Puttin

23、g Demand and Supply Together,Market equilibrium A situation where quantity demanded equals quantity supplied. Competitive market equilibrium A market equilibrium with many buyers and many sellers.,3 - 10,27 of 34,Market Equilibrium: Putting Demand and Supply Together,How Markets Eliminate Surpluses

24、and Shortages,Surplus A situation in which the quantity supplied is greater than the quantity demanded. Shortage A situation in which the quantity demanded is greater than the quantity supplied.,3 - 11,28 of 34,Demand and Supply Both Count: A Tale of Two Letters,3 - 1,Although the demand for Lincoln

25、s letters is greater than Booths, the supply of Booths letters is much smaller, which explains why the equilibrium price for Booths letters is higher.,29 of 34,The Effect of Shifts in Supply on Equilibrium,3 - 12,The Effect of Demand and Supply Shifts on Equilibrium,30 of 34,The Falling Price of Lar

26、geFlat-Screen Televisions,Cornings breakthrough spurred the manufacture of LCD televisions in Taiwan, South Korea, and Japan, and an eventual decline in price.,3 - 4,31 of 34,The Effect of Shifts in Demand on Equilibrium,3 - 13,The Effect of Demand and Supply Shifts on Equilibrium,32 of 34,The Effec

27、t of Shifts in Demand and Supply over Time,3 - 14,The Effect of Demand and Supply Shifts on Equilibrium,33 of 34,The Effect of Shifts in Demand and Supply over Time,3 - 13,The Effect of Demand and Supply Shifts on Equilibrium,34 of 34,High Demand and Low Prices in the Lobster Market?,3 - 2,Supply and demand for lobster both increase during the summer, but the increase in supply is greater than the increase in dema