PPT-Shifts of the Demand Curve

In this lesson students will identify factors which can cause a demand curve to shift Students will be able to define andor identify the following terms Ceteris Paribus Shifts in the Demand Curve. © 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 . Supply and Demand. You Are Here. Definitions. Supply and Demand: . the name of the most important model in all economics. Price: . the amount of money that must be paid for a unit of output. Market: . . of . the trade balance. . TB . & income . Y. .. . . Key . assumption: . P. fixed . => . Y. ≠ . .. Mundell. -Fleming . model. . Key . additional assumption:. international capital flows . The Curve and the Determinants. The Investment Demand Curve. This curve shows the amount of investment forthcoming at each real interest rate. . The main determinants of investment are the . expected rate of return and the real interest rate. . Chapter 3,4. Volatile oil prices . St. Louis Fed FRED database. . Prices and Production 1976-2013. BP Statistical Review of World Energy. . Laws of Supply and Demand. Supply and Demand Framework. A description of a market includes the quantity of goods that are sold in that market, . Today’s Agenda. Objective: To explain the change in price and quantity when there is a shift in both supply and demand. . Essential Skill: To demonstrate an understanding of concepts. . Review of Single Curve Shifts. 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 . Objectives . Students will…. . Examine the relationship between price and quantity demanded. . Analyze how demand schedules relate to demand curve. . Draw and explain shifts in demand curves. How prices are determined (big picture). Principles of. Sixth Edition. What factors affect buyers’ demand for goods?. Markets and Competition. A . market. is a group of buyers and sellers of a particular product. . A . competitive market. Agenda. Bell Ringer: CBM #3 (Chapters 5 and 6). Preview – How much are you willing to pay?. The Law of Demand . and . Demand Shifters. Activity . – Demand . headlines. Exit Ticket – Find your own!. Introduction & Determinants. Aggregate Demand Curve . (Inverse) Relationship between price level & quantity of aggregate output demanded for the economy as a whole. Aggregate Price Level (measured with GDP deflator). Prepared by Anindita Chakravarty. INTRODUCTION. The kinked demand curve of oligopoly was developed by . Paul M. . Sweezy. in 1939. . The model advocates that the . behavior of oligopolistic organizations remain stable . Is a system where buyers and sellers meet and transaction takes place between them. Not necessarily a geographical area. TYPES OF MARKET. PERFECTLY COMPETETIVE. IMPERFECTLY COMPETETIVE. Monopoly. Monopolistic competition. 1-What is a “change in the quantity demanded”. ?. The movement along the demand curve showing that the amount someone is willing to purchase changes when the price changes. .. 2-Explain the “. Income Effect.