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Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics

Basic Microeconomics

Basic Microeconomics
Basic Microeconomics
Basic Microeconomics
Basic Microeconomics

Demand, Supply and Market

Equilibrium

Firms and Households: Basic Decision-Making Units

Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists
Firms and Households: Basic Decision-Making Units  Firm: primary producing unit in an economy  Exists

Firm: primary producing unit in an economy

Exists when a person or group of people decide to

produce a good or service by transforming inputs

into outputs

Households: consuming unit in an economy Is a large, heterogeneous group whose tastes find expression in the marketplace

A common constraint among consumers is that

they ultimately have limited income. Income

levels are constrained by availability of jobs,

current wages, capability and wealth.

Firms and Households: Basic Decision-Making Units

Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units
Firms and Households: Basic Decision-Making Units

Input Markets and Output

Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow

Markets: Circular Flow

Markets: Circular Flow
Markets: Circular Flow
Markets: Circular Flow

Households and firms interact in both the

product and factor markets

Circular flow of economic activity

Goods and services flow from firms to

households through the output market

Labor services flow from households to firms through input markets. Payment for goods and services flow in the opposite direction.

Demand in Product/Output

Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets
Markets

Markets

Markets
Markets
Markets

Household’s demand for a product depends on the ff:

Price of product

Income available to household Amount of accumulated wealth

Price of other products

Household’s taste or preferences

Expectation about future income, wealth and

prices.

Demand in Product/Output

Markets
Markets

Demand in Product/Output

Markets
Markets
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand
Law of Demand

Law of Demand

Law of Demand
Law of Demand
Law of Demand

A demand schedule shows the quantities of a good

that a household would be willing to buy at different

price levels. These price and quantity coordinates

can be plotted to form a demand curve.

The Law of Demand states an inverse relationship

between quantity demanded and the price

Characteristics of the shape of a demand curve:

Negative slope

Intersects quantity axis as a result of time limitation

Intersects price axis as a result of limited income and wealth

Other Determinants of Household Demand

Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,
Other Determinants of Household Demand  Income and Wealth  Income – sum of all wages,

Income and Wealth

Income sum of all wages, salaries and profits, interest payments, rents and other

forms of earnings received by a household

within a given period of time

Wealth total value of what a household owns minus what it owes (also known as

net worth). It is a stock measure (at a

given point in time).

Other Determinants of Household Demand

Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion
Other Determinants of Household Demand  Prices of Other Goods or Services  Households must apportion

Prices of Other Goods or Services

Households must apportion their income

over so many different goods and services

that the price of any one good will affect

the demand for other goods.

Substitutes and Complements:

Substitutes related goods wherein the

increase in the price of one good leads to the

increase in quantity demanded of another good

Other Determinants of Household Demand

Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the
Other Determinants of Household Demand  Substitutes and Complements:  Complements – related goods wherein the

Substitutes and Complements:

Complements related goods wherein the increase in the price of one good leads to the

decrease in the quantity demanded of another

good

Taste and Preferences

These are volatile and idiosyncratic

Expectations

Expectations about the change in price, income

and wealth affect present and future demand

Demand in Product/Output Markets

Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in
Demand in Product/Output Markets  Changes in Quantity Demanded vs. Changes in Demand  Changes in

Changes in Quantity Demanded vs. Changes in Demand

Changes in the price of a product affect quantity demanded per period. Changes in any other factor, such an income or preferences, affect demand or essentially a shift in the demand curve.

Demand in Product/Output Markets

Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets
Demand in Product/Output Markets

Shift of Demand versus Movement Along a Demand Curve

Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a
Shift of Demand versus Movement Along a Demand Curve  Change in price leads to a

Change in price leads to a change in quantity

demanded or a movement along the same demand

curve

Change in all other factors affecting demand leads to

a change in demand or a shift of the entire demand

curve

From Household Demand to market Demand

From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities
From Household Demand to market Demand  Market demand is the sum of all the quantities

Market demand is the sum of all the quantities of a

good or service demanded per period by all

households buying the good in the market

Graphically the market demand is a horizontal

summation of all individual demand curves.

From Household Demand to market Demand

From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
From Household Demand to market Demand
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets

Supply in Product/Output Markets

Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets
Supply in Product/Output Markets

Supply decisions depend on profit potential. It reacts

to changes in revenues and costs

Costs, in turn, depends on other factors which

include the following:

Type of inputs necessary to produce the product

Amount of each input required

Prices of these inputs

Firms choose the production technique most

appropriate for product and the level of production.

The method of production chosen is one that minimizes cost within reasonable bounds.

Supply in Product/Output Markets
Supply in Product/Output Markets
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply

Law of Supply

Law of Supply
Law of Supply
Law of Supply

Quantity supplied is the amount of a particular

product that firms would be willing and able to offer

for sale at a particular price at a particular period of

time.

A supply schedule shows how much of a product a

firm will sell at different levels of prices.

There is a positive relationship between the quantity of a good supplied and the price.

Determinants of Supply

Cost of Production

Prices of Related Products

Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply
Law of Supply

Law of Supply

Law of Supply
Law of Supply
Law of Supply
Law of Supply

Shifts in Supply versus Movement Along a Supply Curve

Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding
Shifts in Supply versus Movement Along a Supply Curve  A supply curve is derived holding

A supply curve is derived holding everything constant

except the price. When the price of a product

changes, ceteris paribus, a change in quantity

supplied follows and a movement along the same

supply curve takes place.

When factors other than the price changes , the

supply curve shifts resulting in a change in supply.

Shifts in Supply versus Movement Along a Supply Curve

Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve
Shifts in Supply versus Movement Along a Supply Curve

From Individual Supply to Market Supply

From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is
From Individual Supply to Market Supply  Market supply is the sum of all that is

Market supply is the sum of all that is supplied each

period by all producers of a product.

The market supply curve also depends on the

number of firms that produce in the market. Profits

attract other firms to enter the same line of business

as other firms that have done so previously.

From Individual Supply to Market Supply

From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
From Individual Supply to Market Supply
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium

Market Equilibrium

Market Equilibrium
Market Equilibrium
Market Equilibrium

The operation of a market depends on the interaction

between demand and supply.

Conditions that could prevail in the market:

Quantity demanded exceeds quantity supplied or a situation

of excess demand

Quantity supplied exceeds quantity demanded or a situation

of excess supply

Quantity demanded just equals quantity supplied or a

situation of equilibrium in the market

Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium

Market Equilibrium

Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium
Market Equilibrium

Market Equilibrium

Market Equilibrium
Market Equilibrium
Market Equilibrium

Changes in equilibrium occur every time either the

demand or supply curves shift. Changes in quantity

demand, quantity supplied and price will all depend

on how and by how much these curves shift.