PPT-UNIT 2 Demand and supply

Prof Pallabi Mukherjee PALLABI MUKHERJEE PALLABI MUKHERJEE Demand A relation between the price of a good and the quantity that consumers are willing and able to buy during a given period other things constant. © Peter . Berck . 2012. Lecture Outline. Goods. People Demand Goods; . Shift in demand. Firms . Supply Goods; . Keep Supply and Demand Separate. Demand and Supply intersect at the equilibrium price and . DEMAND, SUPPLY . AND PRICES. 7.2: Demand. . When we talk about demand we are referring to the . quantities of a good or service that the potential buyers are willing and able to buy.. Figure 7.1: . and the Market Process. Consumer Choice and . the Law of Demand. Law of Demand. Law of Demand: . the inverse relationship between the price of . a . good and the quantity consumers are willing to purchase. Let's Take A Look At The . Five Demand Shifters. ["TIMER"]. Concentration on these slides is guarantied . to improve your economics grade.. Warning. . D. 1. D. 2. P. QD. 1. QD. 2. 1."Change in Taste". . by Wiley Miller. . . MARKETS. Institution that brings together . buyers (DEMAND) . and sellers (SUPPLY) of resources, goods and services. DEMAND is. Amount of a good or service consumers are . Essential Question:. What are demand and supply, and what factors influence them?. Demand and price. Demand comes at a price. . Burger. . . Quantity. demanded . – amount of a good/service consumers are willing to pay . Sujata. Desai. ECONOMICS. Economics : XI. Part A: Part B:. . Part C: Project . Statistics for Economics. Units: Marks. If many people want a good, then the good has a ________________. High supply. High demand. Low supply. Low demand. Why don’t they sell worm flavored ice cream in the United States?. There is a high supply for it. The quantity of a specific product that a buyer is . able. . and . willing. to buy at a certain price. Usually at a particular . time. and . place. Remember those . time and place utilities . that add value to a product??. Demand, Supply, and the Market Process Consumer Choice and the Law of Demand Economics and Your World Your local grocery store is a great place to see economics in action. Literally millions of individuals Connection to Circular Flow Model. Do individuals supply or demand?. Do business supply or demand?. Who demands in the product market?. Who supplies in the product market?. 2. 3. I am willing to sell several . Law of . Quantity. Demanded. As Price Increases the Quantity . Demanded. Decreases.. As Price Decreases the Quantity . Demanded. Increases. Market Demand Schedule. . Demand Graph. . Price of Normal and Inferior Goods. Reasons for Changes in Demand. Assume that Demand Curve B represents the baseline (original) annual consumption of U.S.-made cars.. For each of the following scenarios, decide: . Will this event cause a shift in the demand curve?. Demand and Supply are . most fundamental concepts of economics and it is the backbone of a market . economy.  . Demand . refers to how much (quantity) of a product or service is desired by buyers. .