What, How and for whom? Central Planning Versus the Market a Free-Market or Capitalist Economic Systems Individual choices determine e Which careers to pursue o Which products to produce or buy e When to start and shut-down a business Who gets what, which is decided by individual preferences and purchasing power Chapter 3-Supply and Demand: An Introduction Slide 11
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 11 What, How, and for Whom? Central Planning Versus the Market ◼ Free-Market or Capitalist Economic Systems ⚫ Individual choices determine ◆Which careers to pursue ◆Which products to produce or buy ◆When to start and shut-down a business ◆Who gets what, which is decided by individual preferences and purchasing power
Buyers and Sellers in Markets ■ A Market o Consists of all buyers and sellers of a good or servce What do you think? o What determines the price of pizza gasoline, a car wash, or other goods and services ? Chapter 3-Supply and Demand: An Introduction Slide 12
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 12 Buyers and Sellers in Markets ◼ A Market ⚫ Consists of all buyers and sellers of a good or service ◼ What do you think? ⚫ What determines the price of pizza, gasoline, a car wash, or other goods and services?
Buyers and Sellers in Markets d Alfred marshall (British economist) Chapter 3-Supply and Demand: An Introduction Slide 13
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 13 # Alfred Marshall -------(British economist) Buyers and Sellers in Markets
Buyers and Sellers in Markets ■ The demand curve A schedule or graph that tells us the quantity of a good that buyers wish to buy at each price aA Property of Demand e As price of a good or service goes down the quantity consumers wish to buy will increase e Therefore. the demand curve is downward- sloping Chapter 3-Supply and Demand: An Introduction Slide 14
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 14 Buyers and Sellers in Markets ◼ The Demand Curve ⚫ A schedule or graph that tells us the quantity of a good that buyers wish to buy at each price ◼ A Property of Demand ⚫ As price of a good or service goes down the quantity consumers wish to buy will increase ⚫ Therefore, the demand curve is downwardsloping
The Daily Demand Curve for Pizza in Chicago Price (S per slice) 3 Demand Quantity 8 2 (1000s of slices per day) Chapter 3-Supply and Demand: An Introduction Slide 15
MB MC Chapter 3 - Supply and Demand: An Introduction Slide 15 The Daily Demand Curve for Pizza in Chicago Price ($ per slice) Quantity (1000s of slices per day) 4 2 3 8 12 16 Demand