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Penawaran dan Permintaan I:Bagaimana Pasar Bekerja
4
Kekuatan Pasar Atas Penawaran Dan
Permintaan
• Penawaran dan permintaan adalah dua kata
yang paling sering digunakan oleh ekonom.
• Penawaran dan permintaan adalah kekuatan
yang membuat pasar bekerja.
• Mikroekonomi modern adalah tentang
penawaran, prmintaan, dan keseimbangan
pasar.
• Pasar adalah sekelompok pembeli dan penjual
daripada barang dan jasa.
• Penwaran dan permintaan berhubungan
dengan tingkah laku manusia sebagaimana
mereka berinteraksi dalam pasar.
PASAR DAN PERSAINGAN
MARKETS AND COMPETITION
• Pembeli pasti berhubungan dengan permintaan.
• Penjual pasti berhubungan dengan penawaran.
Competitive Markets
• Pasar yang kompetitif adalah pasar dimana
ada banyak penjual dan pembeli yang dapat
mempengaruhi harga pasar.
• Kompetisi sempurna
– Produk sama
– Jumlah pembeli dan penjual yang banyak sehingga
tiap-tiapnya tidak mempunyai pengaruh terhadap
harga.
– Pembeli dan penjual adalah pengatur harga.
• Monopoli
– Satu penjual, dan penjual yang menentukan
harga.
Competition: Perfect and Otherwise
• Oligopoli
– Sedikit penjual.
– Tidak selalu merupakan kompetisi yang agresif.
• Kompetisi monopoli
– Banyak penjual.
– Sedikit perbedaan produk.
– Setiap penjual dapat menentukan harga
produknya.
Competition: Perfect and Otherwise
PERMINTAAN
• Kuantitas permintaan adalah jumlah barang
yang ingin dan mampu di beli oleh pembeli.
• Hukum permintaan
“Hukum permintaan menyatakan, permintaan
terhadap barang akan turun apabila harga naik”.
The Demand Curve: The Relationship between
Price and Quantity Demanded
• Tabel Permintaan
– Tabel permintaan adalah tabel yang
menggambarkan hubungan antara harga barang
dengan kuantitas permintaan.
Catherine’s Demand Schedule
The Demand Curve: The Relationship between
Price and Quantity Demanded
• Kurva permintaan
– Kurva permintaan adalah grafik hubungan antara
harga barang dengan kuantitas permintaan.
Figure 1 Catherine’s Demand Schedule and Demand Curve
Copyright © 2004 South-Western
Price of
Ice-Cream Cone
0
2.50
2.00
1.50
1.00
0.50
1 2 3 4 5 6 7 8 9 10 11 Quantity of
Ice-Cream Cones
$3.00
12
1. A decrease
in price ...
2. ... increases quantity
of cones demanded.
Market Demand versus Individual Demand
• Pasar permintaan menjelaskan jumlah
permintaan setiap individu terhadap sejumlah
barang.
• Graphically, individual demand curves are
summed horizontally to obtain the market
demand curve.
Shifts in the Demand Curve
• Perubahan Kuantitas Permintaan
– Pergerakan di sepanjang kurva permintaan.
– Dikarenakan perubahan harga dari produk.
0
D
Price of Ice-
Cream
Cones
Quantity of Ice-Cream Cones
A tax that raises the price of ice-cream
cones results in a movement along the
demand curve.
A
B
8
1.00
$2.00
4
Perubahan Jumlah Permintaan
Pergeseran Kurva Permintaan Curve
• Pendapatan Konsumen
• Harga terhadap barang
• Selera
• Perkiraan
• Jumlah pembeli
S Pergeseran Kurva Permintaan and Curve
• Perubahan Permintaan
– Pergeseran kurva permintaan dapat bergeser ke
kiri ataupun ke kanan.
– Dikarenakan perubahan jumlah permintaan pada
setiap tingkat harga.
Figure 3 Shifts in the Demand Curve
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
Quantity of
Ice-Cream Cones
Increase
in demand
Decrease
in demand
Demand curve, D3
Demand
curve, D1
Demand
curve, D2
0
Shifts in the Demand Curve
• Pendapatan Konsumen
– Ketika pendapatan meningkat maka permintaan
akan barang normal juga akan meningkat.
– Ketika pendapatan meningkat maka permintaan
akan barnag infeerior akan menurun.
$3.00
2.50
2.00
1.50
1.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of Ice-
Cream Cone
Quantity of
Ice-Cream
Cones0
Increase
in demand
An increase in
income...
D1
D2
Consumer Income
Normal Good
$3.00
2.50
2.00
1.50
1.00
0.50
21 3 4 5 6 7 8 9 10 1211
Price of Ice-Cream
Cone
Quantity of
Ice-Cream
Cones0
Decrease
in demand
An increase in
income...
D1D2
Consumer Income
Inferior Good
Shifts in the Demand Curve
• Harga Barang
– Ketika harga suatu barang jatuh dan mengurangi
permintaan akan barang lain, maka kedua benda
tersebut disebut barang subtitusi.
– Ketika harga suatu barng jatuh dan meningkatkan
permintaan akna barang lain maka kedua barang
tersebut disebut pelengkap(complement).
Table 1 Variables That Influence Buyers
Copyright©2004 South-Western
Penawaran
• Kuantitas Penawaran adalah jumlah barang
yang dapat akan dan dapat dijual oleh penjual.
• Hukum Penawaran
– Hukum Penawaran menyatakan penawaran akan
suatu barang akan meningkat ketika harga suatu
barang meningkat.
The Supply Curve: The Relationship between
Price and Quantity Supplied
• Supply Schedule
– Supply schedule adalah tabel yang menunjukan
hubungan harga barang terhadap jumlah
permintaan.
Ben’s Supply Schedule
The Supply Curve: The Relationship between Price
and Quantity Supplied
• Kurva Penawaran
– Kurva penawaran adalah grafik hubungan antara
harga barang terhadap jumlah penawaran.
Figure 5 Ben’s Supply Schedule and Supply Curve
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
0
2.50
2.00
1.50
1.00
1 2 3 4 5 6 7 8 9 10 11 Quantity of
Ice-Cream Cones
$3.00
12
0.50
1. An
increase
in price ...
2. ... increases quantity of cones supplied.
Market Supply versus Individual Supply
• Market supply refers to the sum of all
individual supplies for all sellers of a particular
good or service.
• Graphically, individual supply curves are
summed horizontally to obtain the market
supply curve.
Shifts in the Supply Curve
• Input prices
• Technology
• Expectations
• Number of sellers
Shifts in the Supply Curve
• Change in Quantity Supplied
– Movement along the supply curve.
– Caused by a change in anything that alters the
quantity supplied at each price.
1 5
Price of Ice-
Cream Cone
Quantity of
Ice-Cream
Cones0
S
1.00
A
C
$3.00
A rise in the price of
ice cream cones
results in a
movement along
the supply curve.
Change in Quantity Supplied
Shifts in the Supply Curve
• Change in Supply
– A shift in the supply curve, either to the left or
right.
– Caused by a change in a determinant other than
price.
Figure 7 Shifts in the Supply Curve
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
Quantity of
Ice-Cream Cones
0
Increase
in supply
Decrease
in supply
Supply curve, S 3
curve,
Supply
S 1
Supply
curve, S 2
Table 2 Variables That Influence Sellers
Copyright©2004 South-Western
SUPPLY AND DEMAND TOGETHER
• Equilibrium refers to a situation in which the
price has reached the level where quantity
supplied equals quantity demanded.
SUPPLY AND DEMAND TOGETHER
• Equilibrium Price
– The price that balances quantity supplied and
quantity demanded.
– On a graph, it is the price at which the supply and
demand curves intersect.
• Equilibrium Quantity
– The quantity supplied and the quantity demanded
at the equilibrium price.
– On a graph it is the quantity at which the supply
and demand curves intersect.
At $2.00, the quantity demanded is
equal to the quantity supplied!
SUPPLY AND DEMAND TOGETHER
Demand Schedule Supply Schedule
Figure 8 The Equilibrium of Supply and Demand
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
0 1 2 3 4 5 6 7 8 9 10 11 12
Quantity of Ice-Cream Cones
13
Equilibrium
quantity
Equilibrium price Equilibrium
Supply
Demand
$2.00
Figure 9 Markets Not in Equilibrium
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
0
Supply
Demand
(a) Excess Supply
Quantity
demanded
Quantity
supplied
Surplus
Quantity of
Ice-Cream
Cones
4
$2.50
10
2.00
7
Equilibrium
• Surplus
– When price > equilibrium price, then quantity
supplied > quantity demanded.
• There is excess supply or a surplus.
• Suppliers will lower the price to increase sales, thereby
moving toward equilibrium.
Equilibrium
• Shortage
– When price < equilibrium price, then quantity
demanded > the quantity supplied.
• There is excess demand or a shortage.
• Suppliers will raise the price due to too many buyers
chasing too few goods, thereby moving toward
equilibrium.
Figure 9 Markets Not in Equilibrium
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
0 Quantity of
Ice-Cream
Cones
Supply
Demand
(b) Excess Demand
Quantity
supplied
Quantity
demanded
1.50
10
$2.00
74
Shortage
Equilibrium
• Law of supply and demand
– The claim that the price of any good adjusts to
bring the quantity supplied and the quantity
demanded for that good into balance.
Three Steps to Analyzing Changes in Equilibrium
• Decide whether the event shifts the supply or
demand curve (or both).
• Decide whether the curve(s) shift(s) to the left
or to the right.
• Use the supply-and-demand diagram to see
how the shift affects equilibrium price and
quantity.
Figure 10 How an Increase in Demand Affects the Equilibrium
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
0 Quantity of
Ice-Cream Cones
Supply
Initial
equilibrium
D
D
3. . . . and a higher
quantity sold.
2. . . . resulting
in a higher
price . . .
1. Hot weather increases
the demand for ice cream . . .
2.00
7
New equilibrium$2.50
10
Three Steps to Analyzing Changes in Equilibrium
• Shifts in Curves versus Movements along
Curves
– A shift in the supply curve is called a change in
supply.
– A movement along a fixed supply curve is called a
change in quantity supplied.
– A shift in the demand curve is called a change in
demand.
– A movement along a fixed demand curve is called
a change in quantity demanded.
Figure 11 How a Decrease in Supply Affects the Equilibrium
Copyright©2003 Southwestern/Thomson Learning
Price of
Ice-Cream
Cone
0 Quantity of
Ice-Cream Cones
Demand
New
equilibrium
Initial equilibrium
S1
S2
2. . . . resulting
in a higher
price of ice
cream . . .
1. An increase in the
price of sugar reduces
the supply of ice cream. . .
3. . . . and a lower
quantity sold.
2.00
7
$2.50
4
Table 4 What Happens to Price and Quantity When Supply or
Demand Shifts?
Copyright©2004 South-Western
Summary
• Economists use the model of supply and
demand to analyze competitive markets.
• In a competitive market, there are many
buyers and sellers, each of whom has little or
no influence on the market price.
Summary
• The demand curve shows how the quantity of
a good depends upon the price.
– According to the law of demand, as the price of a
good falls, the quantity demanded rises.
Therefore, the demand curve slopes downward.
– In addition to price, other determinants of how
much consumers want to buy include income, the
prices of complements and substitutes, tastes,
expectations, and the number of buyers.
– If one of these factors changes, the demand curve
shifts.
Summary
• The supply curve shows how the quantity of a
good supplied depends upon the price.
– According to the law of supply, as the price of a
good rises, the quantity supplied rises. Therefore,
the supply curve slopes upward.
– In addition to price, other determinants of how
much producers want to sell include input prices,
technology, expectations, and the number of
sellers.
– If one of these factors changes, the supply curve
shifts.
Summary
• Market equilibrium is determined by the
intersection of the supply and demand curves.
• At the equilibrium price, the quantity
demanded equals the quantity supplied.
• The behavior of buyers and sellers naturally
drives markets toward their equilibrium.
Summary
• To analyze how any event influences a market,
we use the supply-and-demand diagram to
examine how the even affects the equilibrium
price and quantity.
• In market economies, prices are the signals
that guide economic decisions and thereby
allocate resources.

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Micro Economic

  • 1. 2 Penawaran dan Permintaan I:Bagaimana Pasar Bekerja
  • 2. 4 Kekuatan Pasar Atas Penawaran Dan Permintaan
  • 3. • Penawaran dan permintaan adalah dua kata yang paling sering digunakan oleh ekonom. • Penawaran dan permintaan adalah kekuatan yang membuat pasar bekerja. • Mikroekonomi modern adalah tentang penawaran, prmintaan, dan keseimbangan pasar.
  • 4. • Pasar adalah sekelompok pembeli dan penjual daripada barang dan jasa. • Penwaran dan permintaan berhubungan dengan tingkah laku manusia sebagaimana mereka berinteraksi dalam pasar. PASAR DAN PERSAINGAN
  • 5. MARKETS AND COMPETITION • Pembeli pasti berhubungan dengan permintaan. • Penjual pasti berhubungan dengan penawaran.
  • 6. Competitive Markets • Pasar yang kompetitif adalah pasar dimana ada banyak penjual dan pembeli yang dapat mempengaruhi harga pasar.
  • 7. • Kompetisi sempurna – Produk sama – Jumlah pembeli dan penjual yang banyak sehingga tiap-tiapnya tidak mempunyai pengaruh terhadap harga. – Pembeli dan penjual adalah pengatur harga. • Monopoli – Satu penjual, dan penjual yang menentukan harga. Competition: Perfect and Otherwise
  • 8. • Oligopoli – Sedikit penjual. – Tidak selalu merupakan kompetisi yang agresif. • Kompetisi monopoli – Banyak penjual. – Sedikit perbedaan produk. – Setiap penjual dapat menentukan harga produknya. Competition: Perfect and Otherwise
  • 9. PERMINTAAN • Kuantitas permintaan adalah jumlah barang yang ingin dan mampu di beli oleh pembeli. • Hukum permintaan “Hukum permintaan menyatakan, permintaan terhadap barang akan turun apabila harga naik”.
  • 10. The Demand Curve: The Relationship between Price and Quantity Demanded • Tabel Permintaan – Tabel permintaan adalah tabel yang menggambarkan hubungan antara harga barang dengan kuantitas permintaan.
  • 12. The Demand Curve: The Relationship between Price and Quantity Demanded • Kurva permintaan – Kurva permintaan adalah grafik hubungan antara harga barang dengan kuantitas permintaan.
  • 13. Figure 1 Catherine’s Demand Schedule and Demand Curve Copyright © 2004 South-Western Price of Ice-Cream Cone 0 2.50 2.00 1.50 1.00 0.50 1 2 3 4 5 6 7 8 9 10 11 Quantity of Ice-Cream Cones $3.00 12 1. A decrease in price ... 2. ... increases quantity of cones demanded.
  • 14. Market Demand versus Individual Demand • Pasar permintaan menjelaskan jumlah permintaan setiap individu terhadap sejumlah barang. • Graphically, individual demand curves are summed horizontally to obtain the market demand curve.
  • 15. Shifts in the Demand Curve • Perubahan Kuantitas Permintaan – Pergerakan di sepanjang kurva permintaan. – Dikarenakan perubahan harga dari produk.
  • 16. 0 D Price of Ice- Cream Cones Quantity of Ice-Cream Cones A tax that raises the price of ice-cream cones results in a movement along the demand curve. A B 8 1.00 $2.00 4 Perubahan Jumlah Permintaan
  • 17. Pergeseran Kurva Permintaan Curve • Pendapatan Konsumen • Harga terhadap barang • Selera • Perkiraan • Jumlah pembeli
  • 18. S Pergeseran Kurva Permintaan and Curve • Perubahan Permintaan – Pergeseran kurva permintaan dapat bergeser ke kiri ataupun ke kanan. – Dikarenakan perubahan jumlah permintaan pada setiap tingkat harga.
  • 19. Figure 3 Shifts in the Demand Curve Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone Quantity of Ice-Cream Cones Increase in demand Decrease in demand Demand curve, D3 Demand curve, D1 Demand curve, D2 0
  • 20. Shifts in the Demand Curve • Pendapatan Konsumen – Ketika pendapatan meningkat maka permintaan akan barang normal juga akan meningkat. – Ketika pendapatan meningkat maka permintaan akan barnag infeerior akan menurun.
  • 21. $3.00 2.50 2.00 1.50 1.00 0.50 21 3 4 5 6 7 8 9 10 1211 Price of Ice- Cream Cone Quantity of Ice-Cream Cones0 Increase in demand An increase in income... D1 D2 Consumer Income Normal Good
  • 22. $3.00 2.50 2.00 1.50 1.00 0.50 21 3 4 5 6 7 8 9 10 1211 Price of Ice-Cream Cone Quantity of Ice-Cream Cones0 Decrease in demand An increase in income... D1D2 Consumer Income Inferior Good
  • 23. Shifts in the Demand Curve • Harga Barang – Ketika harga suatu barang jatuh dan mengurangi permintaan akan barang lain, maka kedua benda tersebut disebut barang subtitusi. – Ketika harga suatu barng jatuh dan meningkatkan permintaan akna barang lain maka kedua barang tersebut disebut pelengkap(complement).
  • 24. Table 1 Variables That Influence Buyers Copyright©2004 South-Western
  • 25. Penawaran • Kuantitas Penawaran adalah jumlah barang yang dapat akan dan dapat dijual oleh penjual. • Hukum Penawaran – Hukum Penawaran menyatakan penawaran akan suatu barang akan meningkat ketika harga suatu barang meningkat.
  • 26. The Supply Curve: The Relationship between Price and Quantity Supplied • Supply Schedule – Supply schedule adalah tabel yang menunjukan hubungan harga barang terhadap jumlah permintaan.
  • 28. The Supply Curve: The Relationship between Price and Quantity Supplied • Kurva Penawaran – Kurva penawaran adalah grafik hubungan antara harga barang terhadap jumlah penawaran.
  • 29. Figure 5 Ben’s Supply Schedule and Supply Curve Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone 0 2.50 2.00 1.50 1.00 1 2 3 4 5 6 7 8 9 10 11 Quantity of Ice-Cream Cones $3.00 12 0.50 1. An increase in price ... 2. ... increases quantity of cones supplied.
  • 30. Market Supply versus Individual Supply • Market supply refers to the sum of all individual supplies for all sellers of a particular good or service. • Graphically, individual supply curves are summed horizontally to obtain the market supply curve.
  • 31. Shifts in the Supply Curve • Input prices • Technology • Expectations • Number of sellers
  • 32. Shifts in the Supply Curve • Change in Quantity Supplied – Movement along the supply curve. – Caused by a change in anything that alters the quantity supplied at each price.
  • 33. 1 5 Price of Ice- Cream Cone Quantity of Ice-Cream Cones0 S 1.00 A C $3.00 A rise in the price of ice cream cones results in a movement along the supply curve. Change in Quantity Supplied
  • 34. Shifts in the Supply Curve • Change in Supply – A shift in the supply curve, either to the left or right. – Caused by a change in a determinant other than price.
  • 35. Figure 7 Shifts in the Supply Curve Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone Quantity of Ice-Cream Cones 0 Increase in supply Decrease in supply Supply curve, S 3 curve, Supply S 1 Supply curve, S 2
  • 36. Table 2 Variables That Influence Sellers Copyright©2004 South-Western
  • 37. SUPPLY AND DEMAND TOGETHER • Equilibrium refers to a situation in which the price has reached the level where quantity supplied equals quantity demanded.
  • 38. SUPPLY AND DEMAND TOGETHER • Equilibrium Price – The price that balances quantity supplied and quantity demanded. – On a graph, it is the price at which the supply and demand curves intersect. • Equilibrium Quantity – The quantity supplied and the quantity demanded at the equilibrium price. – On a graph it is the quantity at which the supply and demand curves intersect.
  • 39. At $2.00, the quantity demanded is equal to the quantity supplied! SUPPLY AND DEMAND TOGETHER Demand Schedule Supply Schedule
  • 40. Figure 8 The Equilibrium of Supply and Demand Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Ice-Cream Cones 13 Equilibrium quantity Equilibrium price Equilibrium Supply Demand $2.00
  • 41. Figure 9 Markets Not in Equilibrium Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone 0 Supply Demand (a) Excess Supply Quantity demanded Quantity supplied Surplus Quantity of Ice-Cream Cones 4 $2.50 10 2.00 7
  • 42. Equilibrium • Surplus – When price > equilibrium price, then quantity supplied > quantity demanded. • There is excess supply or a surplus. • Suppliers will lower the price to increase sales, thereby moving toward equilibrium.
  • 43. Equilibrium • Shortage – When price < equilibrium price, then quantity demanded > the quantity supplied. • There is excess demand or a shortage. • Suppliers will raise the price due to too many buyers chasing too few goods, thereby moving toward equilibrium.
  • 44. Figure 9 Markets Not in Equilibrium Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone 0 Quantity of Ice-Cream Cones Supply Demand (b) Excess Demand Quantity supplied Quantity demanded 1.50 10 $2.00 74 Shortage
  • 45. Equilibrium • Law of supply and demand – The claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance.
  • 46. Three Steps to Analyzing Changes in Equilibrium • Decide whether the event shifts the supply or demand curve (or both). • Decide whether the curve(s) shift(s) to the left or to the right. • Use the supply-and-demand diagram to see how the shift affects equilibrium price and quantity.
  • 47. Figure 10 How an Increase in Demand Affects the Equilibrium Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone 0 Quantity of Ice-Cream Cones Supply Initial equilibrium D D 3. . . . and a higher quantity sold. 2. . . . resulting in a higher price . . . 1. Hot weather increases the demand for ice cream . . . 2.00 7 New equilibrium$2.50 10
  • 48. Three Steps to Analyzing Changes in Equilibrium • Shifts in Curves versus Movements along Curves – A shift in the supply curve is called a change in supply. – A movement along a fixed supply curve is called a change in quantity supplied. – A shift in the demand curve is called a change in demand. – A movement along a fixed demand curve is called a change in quantity demanded.
  • 49. Figure 11 How a Decrease in Supply Affects the Equilibrium Copyright©2003 Southwestern/Thomson Learning Price of Ice-Cream Cone 0 Quantity of Ice-Cream Cones Demand New equilibrium Initial equilibrium S1 S2 2. . . . resulting in a higher price of ice cream . . . 1. An increase in the price of sugar reduces the supply of ice cream. . . 3. . . . and a lower quantity sold. 2.00 7 $2.50 4
  • 50. Table 4 What Happens to Price and Quantity When Supply or Demand Shifts? Copyright©2004 South-Western
  • 51. Summary • Economists use the model of supply and demand to analyze competitive markets. • In a competitive market, there are many buyers and sellers, each of whom has little or no influence on the market price.
  • 52. Summary • The demand curve shows how the quantity of a good depends upon the price. – According to the law of demand, as the price of a good falls, the quantity demanded rises. Therefore, the demand curve slopes downward. – In addition to price, other determinants of how much consumers want to buy include income, the prices of complements and substitutes, tastes, expectations, and the number of buyers. – If one of these factors changes, the demand curve shifts.
  • 53. Summary • The supply curve shows how the quantity of a good supplied depends upon the price. – According to the law of supply, as the price of a good rises, the quantity supplied rises. Therefore, the supply curve slopes upward. – In addition to price, other determinants of how much producers want to sell include input prices, technology, expectations, and the number of sellers. – If one of these factors changes, the supply curve shifts.
  • 54. Summary • Market equilibrium is determined by the intersection of the supply and demand curves. • At the equilibrium price, the quantity demanded equals the quantity supplied. • The behavior of buyers and sellers naturally drives markets toward their equilibrium.
  • 55. Summary • To analyze how any event influences a market, we use the supply-and-demand diagram to examine how the even affects the equilibrium price and quantity. • In market economies, prices are the signals that guide economic decisions and thereby allocate resources.