Lecture7(2005.10.8) Class today 57-67 Chapter 3-Supply and Demand: An Introduction Slide 1
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 1 Lecture 7 (2005.10.8) ◼ Class today p57-67
I Supply and Demand An Introduction MB MC CHAPTER
MB MC Supply and Demand: An Introduction
Overview 1 Chapter 3 introduces markets and provides an overview of the supply and demand model. It begins by comparing central planning and the market as alternative methods of allocating resources Chapter 3-Supply and Demand: An Introduction Slide 3
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 3 Overview 1 ◼ Chapter 3 introduces markets and provides an overview of the supply and demand model. It begins by comparing central planning and the market as alternative methods of allocating resources
Overview 2 It includes a brief history of economic thought regarding markets and prices. Emphasizing a core principle of the book, the chapter next discusses the concept of equilibrium. It explains how market forces bring the price and quantity back to equilibrium in the case of surpluses and shortages and includes discussion of price controls(price ceilings and floors). Finally, the chapter explains how to use the supply and demand model to explain changes in prices and quantities Chapter 3-Supply and Demand: An Introduction Slide 4
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 4 Overview 2 ◼ It includes a brief history of economic thought regarding markets and prices. Emphasizing a core principle of the book, the chapter next discusses the concept of equilibrium. It explains how market forces bring the price and quantity back to equilibrium in the case of surpluses and shortages and includes discussion of price controls (price ceilings and floors). Finally, the chapter explains how to use the supply and demand model to explain changes in prices and quantities
Supply and Demand: An Introduction TWO examples: Food delivery system Rental housing market Chapter 3-Supply and Demand: An Introduction Slide 5
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 5 Two examples: ◼ Food delivery system ◼ Rental housing market Supply and Demand: An Introduction