PPT-Chapter 6: Supply, Demand, and Government Policies

Part 1 Laura Jackson Young Government Intervention Price Controls Binding Constraint An imposed constraint that does affect the market equilibrium NonBinding Constraint An imposed constraint that . . 3. Demand and Supply. Chapter 3. Demand, Supply and Relative Prices. Demand and supply determine relative prices.. The word “price” means relative price. Price is an . opportunity cost. .. If we predict a price will fall, we mean its price will fall relative to the average price of other goods and services.. Cengage. Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. . Economics. The Framework for Business. 2. LO1. . The National Economy. 2.16 Supply-side Policies. . What is monetary policy?. What does a production possibility diagram show?. 2.16 . What you need to know. How supply-side policies may increase the potential output of the economy. One of the most influential economists of 20’th century.. Believed only the government is large enough to offset changes in investment spending.. John Maynard Keynes the face of Demand -Side. A change in investment spending will have a magnified effect on total spending. Today:. Aggregate demand. Why is it downward sloping?. Factors that affect the aggregate demand. Aggregate supply. Long-run aggregate supply. Short-run aggregate supply. Why is it upward sloping?. Factors that affect the short-run aggregate supply. 1. 4 Demand, Supply, and Equilibrium. 4.1 Markets. 4.2 How Do Buyers Behave?. 4.3 How Do Sellers Behave?. 4.4 Supply and Demand in Equilibrium. 4.5 What Would Happen if the Government Tried to Dictate the Price of Gasoline. 5.2 How Do Demand and Price Interact?. Demand. . is what people are willing and able to buy at various prices.. • Quantity demanded is a specific amount an individual is willing and able to . buy at . . 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 . Supply. . Students . will define and/or identify the following: . Supply . Law . of . Supply. Supply & Market Supply. Supply Curve. Elastic & Inelastic Supply. Or how Apple sold . over 13 million iPhone 6s and 6s Plus smartphones over the launch . THIRD EDITION. ECONOMICS. and. MACROECONOMICS. Paul Krugman | Robin Wells. What a . competitive market . is and how it is described by the . supply and demand model. What the . demand curve . and . supply curve . price. Demand. Desire to want something and the ability to pay for it. Law of Demand. When the price of goods goes down, then demand goes up and if the price goes up, then demand goes down. Graphing Demand. 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 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. . Demand and Supply. Teacher: Mr Moosajee. Twitter: @BusEconYMO_HGS (The Mr Moosajee). Why study Economics?. If you ever wonder:. How are the world’s scarce resources allocated, and why?. What factors determine prices and why do they always seem to...