logging in or signing up DEMAND AND SUPPLY kanha_jangra Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 6387 Category: Education License: All Rights Reserved Like it (14) Dislike it (1) Added: August 03, 2009 This Presentation is Public Favorites: 4 Presentation Description No description available. Comments Posting comment... By: cskrishnakumar (4 month(s) ago) Exellent.Very useful for both students and teachers Saving..... Post Reply Close Saving..... Edit Comment Close By: johndvillaver (7 month(s) ago) what of great help not only to teachers but to students as well Saving..... Post Reply Close Saving..... Edit Comment Close By: kanishkasantoshpan (14 month(s) ago) very good presentation elaborative & explanatory . thanks Saving..... Post Reply Close Saving..... Edit Comment Close By: krisha_emie (16 month(s) ago) this is very helpful in my class thank you so much.. Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Demand & Supply : Demand & Supply Edited By :- Krishan Jangra MARKETS DEFINED : MARKETS DEFINED MARKETS DEMAND DEFINED : $5 4 3 2 1 DEMAND DEFINED 10 20 35 55 80 A schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices. LAW OF DEMAND : LAW OF DEMAND As Price Falls… …Quantity Demanded Rises As Price Rises… …Quantity Demanded Falls An inverse relationship exists between price and quantity demanded LAW OF DEMAND : Diminishing Marginal Utility LAW OF DEMAND LAW OF DEMAND : Diminishing Marginal Utility LAW OF DEMAND Income Effect LAW OF DEMAND : Diminishing Marginal Utility LAW OF DEMAND Income Effect Substitution Effect LAW OF DEMAND : Diminishing Marginal Utility Income Effect Substitution Effect LAW OF DEMAND Demand Curve Individual and Market Demand GRAPHING DEMAND : GRAPHING DEMAND P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND : 55 P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : 35 P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN Connect the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 What if Demand Increases? GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 D’ Increase in Demand Increase in Quantity Demanded 10 20 35 55 80 30 40 60 80 + GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 What if Demand Decreases? GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 -- 10 20 40 60 D’ Decrease in Demand Decrease in Quantity Demanded GRAPHING DEMAND DETERMINANTS OF DEMAND : DETERMINANTS OF DEMAND Tastes Number of Buyers Income Normal (Superior) & Inferior Goods Prices of Related Goods Substitutes & Complements Unrelated Goods Expectations SUPPLY DEFINED : SUPPLY DEFINED $1 2 3 4 5 CORN Supply is a schedule or a curve showing the amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices. 5 20 35 50 60 LAW OF SUPPLY : LAW OF SUPPLY As Price Rises… …Quantity Supplied Rises As Price Falls… …Quantity Supplied Falls A direct relationship exists between price and quantity supplied GRAPHING SUPPLY : 5 P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : 35 P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Connect the Points GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN What if Supply Increases? GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 Price of Corn Quantity of Corn $5 4 3 2 1 60 50 35 20 5 CORN 80 70 60 45 30 S’ Increase in Supply Increase in Quantity Supplied GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN What if Supply Decreases? GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN S’ 45 30 20 0 -- Decrease in Supply Decrease in Quantity Supplied GRAPHING SUPPLY DETERMINANTS OF SUPPLY : DETERMINANTS OF SUPPLY Resource Prices Technology Taxes & Subsidies Prices of Other Goods Price Expectations Number of Sellers DETERMINANTS OF SUPPLY : DETERMINANTS OF SUPPLY Resource Prices Technology Taxes & Subsidies Prices of Other Goods Price Expectations Number of Sellers Combining with Demand MARKET DEMAND & SUPPLY : MARKET DEMAND & SUPPLY $5 4 3 2 1 10 20 35 55 80 $5 4 3 2 1 60 50 35 20 5 200 B U Y E R S MARKET DEMAND 2,000 4,000 7,000 11,000 16,000 200 S E L L E R S 12,000 10,000 7,000 4,000 1,000 MARKET SUPPLY EQUILIBRIUM Graphically… x x MARKET DEMAND & SUPPLY : 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET Market Clearing Equilibrium MARKET DEMAND & SUPPLY MARKET DEMAND & SUPPLY : 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET Surplus At a $4 price more is being supplied than demanded MARKET DEMAND & SUPPLY MARKET DEMAND & SUPPLY : 11 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET At a $2 price more is being demanded than supplied Shortage MARKET DEMAND & SUPPLY MARKET DEMAND & SUPPLY : 11 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET Shortage MARKET DEMAND & SUPPLY Surplus MARKET EQUILIBRIUM : MARKET EQUILIBRIUM Equilibrium Price & Quantity Rationing Function of Prices Changes in Demand Changes in Quantity Demanded Changes in Supply Changes in Quantity Supplied Complex Cases : Complex Cases Supply Increases; Demand Decreases Prices Decrease Quantity Indeterminate Supply Decreases; Demand Increases Price Increases Quantity Indeterminate Multiple Shifts… Complex Cases : Complex Cases Supply Increases; Demand Increases Prices Indeterminate Quantity Increases Supply Decreases; Demand Decreases Price Indeterminate Quantity Decreases Multiple Shifts… Government Set Prices : Government Set Prices Price Ceilings Shortages Rationing Problem Black Markets Rent Controls Price Floors Surpluses Slide 43: Price Ceiling A maximum price that sellers may charge for a good, usually set by government. Excess Demand (Shortage) Created by a Price Ceiling Price ceiling : Price ceiling Price Rationing :The process by which the market system allocates goods and services to consumers when quantity demanded exceeds quantity supplied. Ration coupons Tickets or coupons that entitle individuals to purchase a certain amount of a given product per month. Black market A market in which illegal trading takes place at market-determined prices. Slide 45: PRICE FLOORS Price floor A minimum price below which exchange is not permitted. Minimum wage A price floor set under the price of labor. Agricultural Products You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
DEMAND AND SUPPLY kanha_jangra Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 6387 Category: Education License: All Rights Reserved Like it (14) Dislike it (1) Added: August 03, 2009 This Presentation is Public Favorites: 4 Presentation Description No description available. Comments Posting comment... By: cskrishnakumar (4 month(s) ago) Exellent.Very useful for both students and teachers Saving..... Post Reply Close Saving..... Edit Comment Close By: johndvillaver (7 month(s) ago) what of great help not only to teachers but to students as well Saving..... Post Reply Close Saving..... Edit Comment Close By: kanishkasantoshpan (14 month(s) ago) very good presentation elaborative & explanatory . thanks Saving..... Post Reply Close Saving..... Edit Comment Close By: krisha_emie (16 month(s) ago) this is very helpful in my class thank you so much.. Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Demand & Supply : Demand & Supply Edited By :- Krishan Jangra MARKETS DEFINED : MARKETS DEFINED MARKETS DEMAND DEFINED : $5 4 3 2 1 DEMAND DEFINED 10 20 35 55 80 A schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices. LAW OF DEMAND : LAW OF DEMAND As Price Falls… …Quantity Demanded Rises As Price Rises… …Quantity Demanded Falls An inverse relationship exists between price and quantity demanded LAW OF DEMAND : Diminishing Marginal Utility LAW OF DEMAND LAW OF DEMAND : Diminishing Marginal Utility LAW OF DEMAND Income Effect LAW OF DEMAND : Diminishing Marginal Utility LAW OF DEMAND Income Effect Substitution Effect LAW OF DEMAND : Diminishing Marginal Utility Income Effect Substitution Effect LAW OF DEMAND Demand Curve Individual and Market Demand GRAPHING DEMAND : GRAPHING DEMAND P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND : 55 P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : 35 P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 Price of Corn Quantity of Corn CORN Plot the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN Connect the Points 10 20 30 40 50 60 70 80 GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 What if Demand Increases? GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 D’ Increase in Demand Increase in Quantity Demanded 10 20 35 55 80 30 40 60 80 + GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 What if Demand Decreases? GRAPHING DEMAND GRAPHING DEMAND : P Q o $5 4 3 2 1 $5 4 3 2 1 10 20 35 55 80 D Price of Corn Quantity of Corn CORN 10 20 30 40 50 60 70 80 -- 10 20 40 60 D’ Decrease in Demand Decrease in Quantity Demanded GRAPHING DEMAND DETERMINANTS OF DEMAND : DETERMINANTS OF DEMAND Tastes Number of Buyers Income Normal (Superior) & Inferior Goods Prices of Related Goods Substitutes & Complements Unrelated Goods Expectations SUPPLY DEFINED : SUPPLY DEFINED $1 2 3 4 5 CORN Supply is a schedule or a curve showing the amounts of a product that producers are willing and able to make available for sale at each of a series of possible prices. 5 20 35 50 60 LAW OF SUPPLY : LAW OF SUPPLY As Price Rises… …Quantity Supplied Rises As Price Falls… …Quantity Supplied Falls A direct relationship exists between price and quantity supplied GRAPHING SUPPLY : 5 P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : 35 P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Plot the Points GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN Connect the Points GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN What if Supply Increases? GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 Price of Corn Quantity of Corn $5 4 3 2 1 60 50 35 20 5 CORN 80 70 60 45 30 S’ Increase in Supply Increase in Quantity Supplied GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN What if Supply Decreases? GRAPHING SUPPLY GRAPHING SUPPLY : S P Q o $5 4 3 2 1 10 20 30 40 50 60 70 80 $5 4 3 2 1 60 50 35 20 5 Price of Corn Quantity of Corn CORN S’ 45 30 20 0 -- Decrease in Supply Decrease in Quantity Supplied GRAPHING SUPPLY DETERMINANTS OF SUPPLY : DETERMINANTS OF SUPPLY Resource Prices Technology Taxes & Subsidies Prices of Other Goods Price Expectations Number of Sellers DETERMINANTS OF SUPPLY : DETERMINANTS OF SUPPLY Resource Prices Technology Taxes & Subsidies Prices of Other Goods Price Expectations Number of Sellers Combining with Demand MARKET DEMAND & SUPPLY : MARKET DEMAND & SUPPLY $5 4 3 2 1 10 20 35 55 80 $5 4 3 2 1 60 50 35 20 5 200 B U Y E R S MARKET DEMAND 2,000 4,000 7,000 11,000 16,000 200 S E L L E R S 12,000 10,000 7,000 4,000 1,000 MARKET SUPPLY EQUILIBRIUM Graphically… x x MARKET DEMAND & SUPPLY : 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET Market Clearing Equilibrium MARKET DEMAND & SUPPLY MARKET DEMAND & SUPPLY : 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET Surplus At a $4 price more is being supplied than demanded MARKET DEMAND & SUPPLY MARKET DEMAND & SUPPLY : 11 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET At a $2 price more is being demanded than supplied Shortage MARKET DEMAND & SUPPLY MARKET DEMAND & SUPPLY : 11 7 S P Q o $5 4 3 2 1 2 4 6 8 10 12 14 16 $5 4 3 2 1 2,000 4,000 7,000 11,000 16,000 $5 4 3 2 1 12,000 10,000 7,000 4,000 1,000 D Price of Corn Quantity of Corn CORN MARKET CORN MARKET Shortage MARKET DEMAND & SUPPLY Surplus MARKET EQUILIBRIUM : MARKET EQUILIBRIUM Equilibrium Price & Quantity Rationing Function of Prices Changes in Demand Changes in Quantity Demanded Changes in Supply Changes in Quantity Supplied Complex Cases : Complex Cases Supply Increases; Demand Decreases Prices Decrease Quantity Indeterminate Supply Decreases; Demand Increases Price Increases Quantity Indeterminate Multiple Shifts… Complex Cases : Complex Cases Supply Increases; Demand Increases Prices Indeterminate Quantity Increases Supply Decreases; Demand Decreases Price Indeterminate Quantity Decreases Multiple Shifts… Government Set Prices : Government Set Prices Price Ceilings Shortages Rationing Problem Black Markets Rent Controls Price Floors Surpluses Slide 43: Price Ceiling A maximum price that sellers may charge for a good, usually set by government. Excess Demand (Shortage) Created by a Price Ceiling Price ceiling : Price ceiling Price Rationing :The process by which the market system allocates goods and services to consumers when quantity demanded exceeds quantity supplied. Ration coupons Tickets or coupons that entitle individuals to purchase a certain amount of a given product per month. Black market A market in which illegal trading takes place at market-determined prices. Slide 45: PRICE FLOORS Price floor A minimum price below which exchange is not permitted. Minimum wage A price floor set under the price of labor. Agricultural Products