The Market Of Supply and Demand - EconomicsFaHaD .H. NooR
demand and supply
demand and supply curve
demand and supply graph
market force
market forces economics
market research
marketing force
supply and demand curve
supply and demand graph
supply chain management pdf
supply demand
supply demand curve
supply demand SlideShare
demand and supply, a free market, equilibrium in marketRAHUL SINHA
notes on chapter 4 of economics book by mankiw.
graphs are taken from the same.
topics covered
WHAT IS MARKET?
WHAT DETERMINES THE QUANTITY AN INDIVIDUAL DEMANDS?
THE DEMAND SCHEDULE AND THE DEMAND CURVE
MARKET DEMAND VERSUS INDIVIDUAL DEMAND
SHIFTS IN THE DEMAND CURVE
WHAT DETERMINES THE QUANTITY AN INDIVIDUAL SUPPLIES?
THE SUPPLY SCHEDULE AND THE SUPPLY CURVE
MARKET SUPPLY VERSUS INDIVIDUAL SUPPLY
SHIFTS IN THE SUPPLY CURVE
SUPPLY AND DEMAND TOGETHER
THREE STEPS TO ANALYZING CHANGES IN EQUILIBRIUM
The Market Of Supply and Demand - EconomicsFaHaD .H. NooR
demand and supply
demand and supply curve
demand and supply graph
market force
market forces economics
market research
marketing force
supply and demand curve
supply and demand graph
supply chain management pdf
supply demand
supply demand curve
supply demand SlideShare
demand and supply, a free market, equilibrium in marketRAHUL SINHA
notes on chapter 4 of economics book by mankiw.
graphs are taken from the same.
topics covered
WHAT IS MARKET?
WHAT DETERMINES THE QUANTITY AN INDIVIDUAL DEMANDS?
THE DEMAND SCHEDULE AND THE DEMAND CURVE
MARKET DEMAND VERSUS INDIVIDUAL DEMAND
SHIFTS IN THE DEMAND CURVE
WHAT DETERMINES THE QUANTITY AN INDIVIDUAL SUPPLIES?
THE SUPPLY SCHEDULE AND THE SUPPLY CURVE
MARKET SUPPLY VERSUS INDIVIDUAL SUPPLY
SHIFTS IN THE SUPPLY CURVE
SUPPLY AND DEMAND TOGETHER
THREE STEPS TO ANALYZING CHANGES IN EQUILIBRIUM
This presentation is made for " Introduction to business" course. It is about Types of competitions in sales market or Market Structure which has 4 types ; Perfect, Monopolistic, Oligopoly, and Monopoly. It includes case study of " Wal-Mart " as well. ( but i'm not sure if it's accurate )
File Format : PPTX Power Point 2007 or Higher.
Miss Nannapat K. ( MUM )
Tim3flies
This presentation is made for " Introduction to business" course. It is about Types of competitions in sales market or Market Structure which has 4 types ; Perfect, Monopolistic, Oligopoly, and Monopoly. It includes case study of " Wal-Mart " as well. ( but i'm not sure if it's accurate )
File Format : PPTX Power Point 2007 or Higher.
Miss Nannapat K. ( MUM )
Tim3flies
Introduction to Demand
We buy products for their utility- the pleasure, usefulness, or satisfaction they give us.
What is your utility for the following products? (Measure your utility by the maximum amount you would be willing to pay for this product)Do we have the same utility for these goods?Introduction to Demand
One reason the demand curve slopes downward is due to diminish marginal utility
The principle of diminishing marginal utility says that our additional satisfaction tends to go down as we consume more and more units.
To make a buying decision, we consider whether the satisfaction we expect to gain is worth the money we must give up.
Changes in Demand
Demand Curves can also shift in response to the following factors:
Buyers (# of): changes in the number of consumers
Income: changes in consumers' income
Tastes: changes in preference or popularity of product/ service
Expectations: changes in what consumers expect to happen in the future
Related goods: compliments and substitutes.
BITER: factors that shift the demand curve
Changes in Demand
Prices of related goods affect on demand
Substitute goods a substitute is a product that can be used in the place of another.
The price of the substitute good and demand for the other good are directly related
For example, Coke Price
Pepsi Demand
Complementary goods a compliment is a good that goes well with another good.
When goods are complements, there is an inverse relationship between the price of one and the demand for the other
For example, Peanut Butter Price
Jam Demand
Introduction to Supply
Supply refers to the various quantities of a good or service that producers are willing to sell at all possible market prices.
Supply can refer to the output of one producer or to the total output of all producers in the market (market supply).Introduction to Supply
• A supply schedule can be shown as points on a graph.
• The graph lists prices on the vertical axis and quantities supplied on the horizontal axis.
• Each point on the graph shows how many units of the product or service a producer (or group of producers) would willing sell at a particular price.
• The supply curve is the line that connects these points.
Introduction to Supply
As the price for a good rises, the quantity supplied rises and the quantity demanded falls. As the price falls, the quantity supplied falls and the quantity demanded rises.
The law of supply holds that producers will normally offer more for sale at higher prices and less at lower prices.Introduction to Supply
• The reason the supply curve slopes upward is due to costs and profit.
• Producers purchase resources and use them to produce output.
• Producers will incur costs as they bid resources away from their alternative uses.Introduction to Supply
• Businesses provide goods and services hoping to make a profit.
Profit is the money a business has left over after it covers its costs.
Businesses try to sell at prices high enough to cover it
2. Discuss What is a market? In a market who is the consumer? How does the price of a good affect the consumer?
3. Market An arrangement that allows buyers and sellers to exchange things Markets exist because no one is self sufficient and no one produces all we require to satisfy all our needs and wants.
4. Demand Description The quantities of a particular good or service consumers are willing and able to buy at different possible prices at a particular time
5. Demand Illustration p.1 sec. 1 As price goes up, quantity demanded goes down Price D1 Quantity
6. Discuss How does demand and “want” or “desire” differ? You may want or desire a new car or a closet full of clothes, but you demand these things only when you are willing and able to buy them.
7. Quantity Demand The quantities of a particular good or service consumers are willing and able to buy at set prices at a particular time
9. Demand Schedule How much people are going to buy at the various prices. Ex. The price of pizza Price Quantity $.50 $1.00 $1.50 $2.00 $2.50
10. Law of Demand As price goes up quantity goes down As price goes down quantity goes up People buy less of something at higher prices than they do at lower prices.
11. ELASTIC DEMAND: demand that is very sensitive to a change in price goods that one might stop buying or cut back on as price increased (SUVs, Luxury items)**on a graph this demand curve will be FLAT
12. INELASTIC DEMAND demand that is not very sensitive to a change in price goods that you would buy at any price; there are few if any substitutes for these goods. (milk, gas, prescription drugs) **on a graph this demand curve would be very steep.
13. Illustration of Decrease and Increase in Demand Decrease in Price Increase in Price Price Price D2 D1 D2 D1 Quantity Quantity The less you buy the more you will move to the left!
14. The Demand Curve The Demand Curve slopes downward to the right because the consumer is willing and able to buy more gasoline at lower prices than at higher prices.
15. Scenario #1 Harris Teeter is advertising a sale on hot dog buns. What is the impact on the demand for hot dogs?
16. Scenario #2 Playstation 3, the newest video game console, hits stores. What is the impact on the demand for Xbox 360?
17. Scenario #3 The weatherman forecasts rain for the weekend in Charlotte. What is the impact on the demand for umbrellas?
18. Scenario #4 The N.C. General Assembly increases minimum wage to $7/hour. What is the impact on the demand for clothing?
19. Scenario #5 A snowy blizzard blows through Charlotte. What is the impact on the demand for snow boots?
20. Scenario #6 The price of MP3 players decreases dramatically due to new technology. What is the impact on the demand for portable CD players?
41. Discuss Now you are the producer Think about the business you are creating Things are now going to reverse
42. Supply Description The quantity of goods a producer is willing and able to sell at various prices at a particular time. P S1 Q
43. Quantity Supplied The quantity of goods a producer is willing and able to sell at a set price at a particular time. P S1 Q
44. Supply Schedule A list of quantities supplied by a provider at certain prices Price Quantity $.50 1 $1.00 2 $1.50 3 $2.00 4 $2.50 5
45. Law of Supply As price goes up, quantity goes up As price goes down, quantity goes down More items will be offered for sale at a higher price than at a lower price
48. Supply Curve The Supply Curve slopes upward and to the right because the producer is willing and able to sell more products at higher prices than at lower prices.
51. Costs of Inputs Decrease Effect on Supply Supply Increases (shift right) Spending less to run the business Examples Land Labor Capital P S1 S2 Q
52. Number of Suppliers Increases Effect on Supply Supply Increases (shift right) Example: Basketballs Dicks Sporting Goods Sports Authority Footlocker P S1 S2 Q
53. Weather is bad for product S2 Effect on Supply Supply Decreases (shift left) Example A hurricane during the orange growing season P S1 Q
54. SO… can you apply this knowledge? 1) Together lets decide if the following scenarios are a change in… Input costs Number of suppliers Weather 2) Then decide if it will Increase supply Decrease Supply
55. Situation #1 Dick’s Sporting Goods goes out of business. What is the impact on basketballs in Charlotte? -number of suppliers changes -Supply Decreases
56. Situation #2 A hurricane destroys the orange groves in Florida. What is the impact on the supply of Orange Juice? -weather changes -Supply Decreases
57. Situation #3 The price of gas decreases. What is the impact of trucking companies? -cost of inputs change -Supply Increase
58. Situation #4 Nike moves their factory from the U.S. to China where workers are paid less. What is the impact on the supply of Nike’s shoes? -change in input costs -Supply Increases
63. Excess Demand: when quantity demanded is more than quantity supplied aka SHORTAGE!!!! shortage
64. Excess Supply: when quantity supplied is more than quantity demanded aka SURPLUS!!!! surplus
65. A shift in the demand curve or the supply curve will result in a new equilibrium price.
66. Government Intervention in a Market Economy Price Ceiling: a maximum price that can be legally charged for a good or service (example: rent control) Price Floor: a minimum price for a good or service (example: minimum wage)
67. Inflation and Deflation Inflation: a general increase in prices (over the years, prices rise and fall, but in the American economy, they have mostly risen) Deflation: A substantial drop in the prices