《微观经济学》（双语)课程教学大纲 一、课程基本信息 课程代码：18060013 课程名称：《微观经济学》（双语）》 英文名称：Microeconomics 课程类别：学科基础课 时：48 学 分分：3 适用对象：经济管理类 考核方式：考试 先修课程：高中数学 二、课程简介 中文简介 作为微观经济学的第一门课，本课程将向学生提供这一领域的基本观点、基本概 念和分析工具。学生将学习市场如何运做，各个经济主体如何做出决策，以及他们对 资源配置的含义。本课程将包括：对一些基本经济原理的介绍，供给和需求，市场与 福利，公共部门经济学，企业行为与产业组织等。本课程将更多地侧重应用与政策。 英文简介 As the first course of microeconomics,this course will provide students with the fundamental ideas.basic concepts and techniques in this field.Students will study how the markets work,how the economic agents make decisions,and their implications for the allocation of resources.This course will includes:Introduction to Some Principles of Economics,Demand and Supply,Markets and Welfare,the Economics of the Public Sector Firm Behavior and the Organization of Industry,etc.More of this course is devoted to application and policy 三、课程性质与教学目的 微观经济学是经济管理类专业的基础课，揭示了关于现代化大生产、市场经济运 行和资源配置机制、政府宏观调控和企业管理的基本规律，也反映了发达资本主义国 家特殊的阶级利益、制度属性和意识形态。学习该课程，需要以马克思主义理论为指 导并从中国实际出发，遵循理论移植规律，紧密联系当代中国特色社会主义丰富实践， 客观认识西方经济学，取其之精华、去之糟粕。 1
1 《微观经济学》（双语）课程教学大纲 一、课程基本信息 课程代码：18060013 课程名称：《微观经济学》（双语） 英文名称：Microeconomics 课程类别：学科基础课 学 时：48 学 分：3 适用对象: 经济管理类 考核方式：考试 先修课程：高中数学 二、课程简介 中文简介 作为微观经济学的第一门课，本课程将向学生提供这一领域的基本观点、基本概 念和分析工具。学生将学习市场如何运做，各个经济主体如何做出决策，以及他们对 资源配置的含义。本课程将包括：对一些基本经济原理的介绍，供给和需求，市场与 福利，公共部门经济学，企业行为与产业组织等。本课程将更多地侧重应用与政策。 英文简介 As the first course of microeconomics, this course will provide students with the fundamental ideas, basic concepts and techniques in this field. Students will study how the markets work, how the economic agents make decisions, and their implications for the allocation of resources. This course will includes: Introduction to Some Principles of Economics, Demand and Supply, Markets and Welfare, the Economics of the Public Sector, Firm Behavior and the Organization of Industry, etc. More of this course is devoted to application and policy. 三、课程性质与教学目的 微观经济学是经济管理类专业的基础课，揭示了关于现代化大生产、市场经济运 行和资源配置机制、政府宏观调控和企业管理的基本规律，也反映了发达资本主义国 家特殊的阶级利益、制度属性和意识形态。学习该课程，需要以马克思主义理论为指 导并从中国实际出发，遵循理论移植规律，紧密联系当代中国特色社会主义丰富实践， 客观认识西方经济学，取其之精华、去之糟粕
四、教学内容及要求 第一章 Ten Prineiples of Economics (一)目的与要求 By theend of this chapter,students should understand: 1.that economics is about the allocation of scarce resources me of the tradeoff that people face 3.the meaning of opportunity cost 4.how to use marginal reasoning when making decisions 5.how incentive affect people's behavior 6.why trade among people or nations can be good foe evervone 7.why markets are a good,but not perfect,way toallocate resources hat determine ome trends in the overall economy 9.How to study and treat microeconomics from the standpoint of Marxism? (二)教学内容 I.Introduction The word Aecor nye comes from the Greek word meaning Aone who manages a household B Fundamental economic problem:resources are scarce. Definition of Scarcity:the limited nature of society's resources. D Definition of Economics:the study of how society manages its scarce IL. resource How People Make Decisions A. Principle #1:People Face Tradeoffs 1 Making decisions reguires trading off one goal for another. A special example of a tradeoff is the tradeoff between efficiency and equity Definition of Efficiency:the property of society getting the most it can from its scarce resources. b Definition of Equity:the property of distributing economic prosperity fairly among the members of society. Principle #2:The Cos You Give Up to et Making decisions requires individuals to consi ider the benefits and costs of some action. Definition of Opportunity Cost:whatever must be given up to obtain some item Principle #3:Rational People Think at the Ma Many decisi life involve increm decisions 2 Definition of Marginal Changes:small incremental adjustments to a plan ofaction. 2
2 四、教学内容及要求 第一章 Ten Principles of Economics （一）目的与要求 By the end of this chapter, students should understand: 1. that economics is about the allocation of scarce resources 2. some of the tradeoff that people face 3. the meaning of opportunity cost 4. how to use marginal reasoning when making decisions 5. how incentive affect people’s behavior 6. why trade among people or nations can be good foe everyone 7. why markets are a good, but not perfect, way to allocate resources 8. what determines some trends in the overall economy 9. How to study and treat microeconomics from the standpoint of Marxism? （二）教学内容 I. Introduction A. The word Aeconomy@ comes from the Greek word meaning Aone who manages a household. B. Fundamental economic problem: resources are scarce. C. Definition of Scarcity: the limited nature of society’s resources. D. Definition of Economics: the study of how society manages its scarce resources. II. How People Make Decisions A. Principle #1: People Face Tradeoffs 1. Making decisions requires trading off one goal for another. 2. A special example of a tradeoff is the tradeoff between efficiency and equity. a. Definition of Efficiency: the property of society getting the most it can from its scarce resources. b. Definition of Equity: the property of distributing economic prosperity fairly among the members of society. B. Principle #2: The Cost of Something Is What You Give Up to Get It 1. Making decisions requires individuals to consider the benefits and costs of some action. 2. Definition of Opportunity Cost: whatever must be given up to obtain some item. C. Principle #3: Rational People Think at the Margin 1. Many decisions in life involve incremental decisions. 2. Definition of Marginal Changes: small incremental adjustments to a plan of action
D. Principle #4:People Respond to Incentives Because people make decisions by weighing costs and benefits,their decisions may change in response to changes in costs and benefits ow People Interact Can Make Everyone Better Off B. Principle #6:Markets Are Usually a Good Way to Organize Economic Activity 1 Definition of Market Economy:an economy that allocates resources through the decentralized decisions of many firms and households as the interact in markets for goods and service Principle #7:Governments Can Sometimes Improve Market Outcomes 1. Goals of most government policies:promotion of efficiency and equity. Goverment policy can be most useful when there is market failure on of Marke Failure:a situatio ch a market left on its own fails to allocate resources efficiently. Examples of Market Failure a. Definition of Externality:the impact of one person's actions on the well-being of a bystander. h Definition of Market Power:the ability of a single economic actor (or small group of actors)to have a substantial influence on market prices. 4. Note that the principle states that the government can improve market outcomes.This is not saying that the government always does improve market outcomes IV. How the Eco nomy as a Whole Works A. Principle #8:A Country's Standard of Living Depends on Its Ability to Produce Goods and Services 1. Definition of Productivity:the quantity of goods and services produced from each hour of a worker's time. 2 Too Much Money Definition of Inflation:an increase in the overall level of prices in the economy 2 When the government creates a large amount of money,the value of money falls Principle #10:Society Faces a Short-Run Tradeoff between Inflation and Unemployment Definition of Phillips Curve:the short-run tradeoff between inflation and unemployment. 3
3 D. Principle #4: People Respond to Incentives Because people make decisions by weighing costs and benefits, their decisions may change in response to changes in costs and benefits. III. How People Interact A. Principle #5: Trade Can Make Everyone Better Off B. Principle #6: Markets Are Usually a Good Way to Organize Economic Activity 1. Definition of Market Economy: an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services. C. Principle #7: Governments Can Sometimes Improve Market Outcomes 1. Goals of most government policies: promotion of efficiency and equity. 2. Government policy can be most useful when there is market failure. Definition of Market Failure: a situation in which a market left on its own fails to allocate resources efficiently. 3. Examples of Market Failure a. Definition of Externality: the impact of one person’s actions on the well-being of a bystander. b. Definition of Market Power: the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices. 4. Note that the principle states that the government can improve market outcomes. This is not saying that the government always does improve market outcomes. IV. How the Economy as a Whole Works A. Principle #8: A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services 1. Definition of Productivity: the quantity of goods and services produced from each hour of a worker’s time. 2. High productivity implies a high standard of living. B. Principle #9: Prices Rise When the Government Prints Too Much Money 1. Definition of Inflation: an increase in the overall level of prices in the economy. 2. When the government creates a large amount of money, the value of money falls. C. Principle #10: Society Faces a Short-Run Tradeoff between Inflation and Unemployment Definition of Phillips Curve: the short-run tradeoff between inflation and unemployment
VI.How to learn Microeconomics 1.Insist on analyzing with Marxist standpoint,viewpoint and method 2.Deeply understand the history of capitalist development 3.Closely linked with the practice of socialism with Chinese characteristics 4 Treat correctly on the methodology of Western economics (三)课后练习 1.You were planning to spend Saturday working at your part-time job,but a friend asks you to go sking.What t is the true cost of g ing ski suppo se that u had been planning to spend the day studying at the library.What is the cost of going skiing in this case?Explain. 2 Your roommate is a better cook than you are.but you can clean more quickly than your roommate can.If your roommate did all of the cooking and you did all of the cleaning.would your chores take you more or less time than ify evenly?Give a similar example of how specialization and trade can make two countrie both better off. (四)教学方法与手段 课堂讲授。 第二章Thinking Like An Economist (一)目的与要求 By the end of this chapter,students should understand 1.how economics apply the methods of science 2.how assumptions and models can shed light on the world 3.two simple models-the circular flow and the production possibilities frontier 4.the distinguish between microeconomics and macroeconomics 5.the difference betwee ve and normative statement 6.theroe of econmics in making policy 7.why economists sometimes disagree with one another (二)教学内容 The Economist as Scientist A. Economists follow the scientific method 1. Observations help us to develop theory. 2 data can be collected and analyzed to evaluate theories Experiments are more difficult in economics than in physical science becaus ontrolled ments ca not be used. easier to understand Most assumptions will be somewhat unrealistic but will have small effects on the actual outcome of the answer. 4
4 VI. How to learn Microeconomics 1. Insist on analyzing with Marxist standpoint, viewpoint and method 2. Deeply understand the history of capitalist development 3. Closely linked with the practice of socialism with Chinese characteristics 4. Treat correctly on the methodology of Western Economics （三）课后练习 1. You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose that you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain. 2. Your roommate is a better cook than you are, but you can clean more quickly than your roommate can. If your roommate did all of the cooking and you did all of the cleaning, would your chores take you more or less time than if you divided each task evenly? Give a similar example of how specialization and trade can make two countries both better off. （四）教学方法与手段 课堂讲授。 第二章 Thinking Like An Economist （一） 目的与要求 By the end of this chapter, students should understand: 1. how economics apply the methods of science 2. how assumptions and models can shed light on the world 3. two simple models – the circular flow and the production possibilities frontier 4. the distinguish between microeconomics and macroeconomics 5. the difference between positive and normative statement 6. the role of economics in making policy 7. why economists sometimes disagree with one another （二） 教学内容 I. The Economist as Scientist A. Economists follow the scientific method. 1. Observations help us to develop theory. 2. Data can be collected and analyzed to evaluate theories. 3. Experiments are more difficult in economics than in physical science because controlled experiments cannot be used. B. Assumptions make the world easier to understand. Most assumptions will be somewhat unrealistic but will have small effects on the actual outcome of the answer
Economists use economic models to explain the world around us. 1.Most economic models are composed of diagrams and equations. 2 The goal of a model is to simplify reality in order to increase our andm呢 This is where the euse of assumptions is helpful. D Our First Model:The Circular Flow Digram Definition of Circular-Flow Diagram:a visual model of the economy that shows how dollars flow through markets among households and firms Our Second model-The production possibilities frontie Definition of Production Possibilities Frontier:a graph that sho the combinations of output that the economy can possibly produce given the available factors of production and the available production technology. Microeconomics and macroeconomics Definition of Microeco mics:the study of how households and firms make decisions and how they interact in markets. Definition of Macroeconomics:the study of economy-wide phenomena,including inflation,unemployment,and economic growth. The Fcon omist as Policy Adviser Positive Versus Normative Analysis Definition of Positive Statements:claims that attempt to describe the world as it is Definition of Normative Statements:claims that attempt to prescribe how the world should be 3 Positive statements can be evaluated using data,while normative statements involve personal viewpoints. B. Economists in Washington III.Why Economists Disagree A Differences in Scientific Judgments Differences in Values Perception Versus Reality Appendix-Graphing:A Brief Review A Graphs of a Single Variable B Graphs of Two Variables:The Coordinate System Curves in the Coordinate System D Slope and asti Cause and Effect F. Omitted Variables G. Reverse Causality 5
5 C. Economists use economic models to explain the world around us. 1. Most economic models are composed of diagrams and equations. 2. The goal of a model is to simplify reality in order to increase our understanding. This is where the use of assumptions is helpful. D. Our First Model: The Circular Flow Diagram Definition of Circular-Flow Diagram: a visual model of the economy that shows how dollars flow through markets among households and firms. E. Our Second Model: The Production Possibilities Frontier Definition of Production Possibilities Frontier: a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology. F. Microeconomics and Macroeconomics 1. Definition of Microeconomics: the study of how households and firms make decisions and how they interact in markets. 2. Definition of Macroeconomics: the study of economy-wide phenomena, including inflation, unemployment, and economic growth. II. The Economist as Policy Adviser A. Positive Versus Normative Analysis 1. Definition of Positive Statements: claims that attempt to describe the world as it is. 2. Definition of Normative Statements: claims that attempt to prescribe how the world should be. 3. Positive statements can be evaluated using data, while normative statements involve personal viewpoints. B. Economists in Washington III. Why Economists Disagree A. Differences in Scientific Judgments B. Differences in Values C. Perception Versus Reality IV. Appendix — Graphing: A Brief Review A. Graphs of a Single Variable B. Graphs of Two Variables: The Coordinate System C. Curves in the Coordinate System D. Slope and Elasticity E. Cause and Effect F. Omitted Variables G. Reverse Causality
(三)课后练习 tradeoffs.Use a production possibilities frontier to illustrate society's tradeoff betweena clean environment and high incomes.What do you suppose determines the shape and position of the frontier?Show what happens to the frontier if engineers develop an automobile engine with almost no emissions (四) 教学方法与手段 课堂讲授。 第三章Interdependence and The Gains from Trade (-) 目的与要求 By the end of this chapter,students should understand: 1.how everyone can benefit when people trade with one another 2.the meaning of absolute advantage and comparative advantage 3.how compar ative advantage explains the gains from trade 4.how to apply the theory of comparative advantage to every life and nation policy. (二) 教学内容 A Parable for the Modem Economy A. Example:two goods meat and potatoes and two people a cattle rancher and a potato farmer (both of whom like to consume both potatoes and meat). Production possibilities The Principle of Comparative Advantage A. Absolute Advantage Definition of Absolute Advantage:the comparison among producers of a good according to their productivity. Opportunity Cost and Comparative Advantage Definition of Opportunity Co:whatever must be given up toobain some item. Definition of Comparative Advantage:the comparison among producers of a good according to their opportunity cost. 3. Because the opportunity cost of producing one good is the inverse of the oppo the other,it is in possible fo person to have a comparative advantage in the production of both goods. Comparative Advantage and Trade When specialization in a good occurs (assuming there is a comparative advantage),total output will grow 6
6 （三） 课后练习 1. The first principle of economics discussed in Chapter 1 is that people face tradeoffs. Use a production possibilities frontier to illustrate society’s tradeoff between a clean environment and high incomes. What do you suppose determines the shape and position of the frontier? Show what happens to the frontier if engineers develop an automobile engine with almost no emissions. （四） 教学方法与手段 课堂讲授。 第三章 Interdependence and The Gains from Trade （一） 目的与要求 By the end of this chapter, students should understand: 1. how everyone can benefit when people trade with one another 2. the meaning of absolute advantage and comparative advantage 3. how comparative advantage explains the gains from trade 4. how to apply the theory of comparative advantage to every life and nation policy. （二） 教学内容 I. A Parable for the Modern Economy A. Example: two goods — meat and potatoes and two people — a cattle rancher and a potato farmer (both of whom like to consume both potatoes and meat). B. Production Possibilities C. Specialization and Trade II. The Principle of Comparative Advantage A. Absolute Advantage Definition of Absolute Advantage: the comparison among producers of a good according to their productivity. B. Opportunity Cost and Comparative Advantage 1. Definition of Opportunity Cost: whatever must be given up to obtain some item. 2. Definition of Comparative Advantage: the comparison among producers of a good according to their opportunity cost. 3. Because the opportunity cost of producing one good is the inverse of the opportunity cost of producing the other, it is impossible for a person to have a comparative advantage in the production of both goods. C. Comparative Advantage and Trade 1. When specialization in a good occurs (assuming there is a comparative advantage), total output will grow
2 As long as the opportunity cost of producing the goods differs across the two individuals,both can gain from specialization and trade. III.Applications of Comparative Advantage Should Tiger Woods Mow His Own Lawn? ould the United States Trade with Other Countries? Just as individuals can benefit from specialization and trade.so can the populations of different countries. 2 Definition of Imports:goods produced abroad and sold domestically. Definition of Exports goods produced domestically and sold abroad 4 The ciple of comparative advantage suggests that each good should be produced by the country with a comparative advantage in producing that good(smaller opportunity cost). Through specialization and trade,countries can have more of all oods to consume (三)课后练习 1.American and Japanese workers can each produce 4 cars a year.An American worker can produce 10 tons of grain a year,whereas a Japanese worker can produce 5 tons of grainayear.To keep thingssi ssume that eachc ountry has 100 million workers For this tuatio s to Table 3-1. b.Graph the production possibilities frontier of the American and Japanese economies c.For the United States,what is the opportunity cost ofa car?Of grain?For Japan,what is the opportunity cost of a car?Of grain?Put this information in a table analogous to Table 23 d.Which counry has an absolute advantage in producing cars?In producir ng grain? country h a comparative advantage in prod acing cars?In roducing grain? f.Without trade,half of each country's workers produce cars and half produce grain.What quantities of cars and grain does each country produce? g.Starting from a position without trade,give an example in which trade makes each ntry better off. (四) 教学方法与手段 课堂讲授。 第四章The Market Forces of Suppl y and Demand 目的与要求 By the end of this chapter.students should understand 1. what a competitive market is 2.what determines the demand for a good in a competitive market 3. what determines the supply of a good in a competitive market 4.how supply and demand together set the price of a good and the quantity sold 5.the key role of prices in allocating scarce resources in market economics 7
7 2. As long as the opportunity cost of producing the goods differs across the two individuals, both can gain from specialization and trade. III. Applications of Comparative Advantage A. Should Tiger Woods Mow His Own Lawn? B. Should the United States Trade with Other Countries? 1. Just as individuals can benefit from specialization and trade, so can the populations of different countries. 2. Definition of Imports: goods produced abroad and sold domestically. 3. Definition of Exports: goods produced domestically and sold abroad. 4. The principle of comparative advantage suggests that each good should be produced by the country with a comparative advantage in producing that good (smaller opportunity cost). 5. Through specialization and trade, countries can have more of all goods to consume. （三） 课后练习 1. American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. a. For this situation, construct a table analogous to Table 3-1. b. Graph the production possibilities frontier of the American and Japanese economies. c. For the United States, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of grain? Put this information in a table analogous to Table 3-3. d. Which country has an absolute advantage in producing cars? In producing grain? e. Which country has a comparative advantage in producing cars? In producing grain? f. Without trade, half of each country’s workers produce cars and half produce grain. What quantities of cars and grain does each country produce? g. Starting from a position without trade, give an example in which trade makes each country better off. （四） 教学方法与手段 课堂讲授。 第四章 The Market Forces of Supply and Demand （一） 目的与要求 By the end of this chapter, students should understand: 1. what a competitive market is 2. what determines the demand for a good in a competitive market 3. what determines the supply of a good in a competitive market 4. how supply and demand together set the price of a good and the quantity sold 5. the key role of prices in allocating scarce resources in market economics
(二)教学内容 Markets and Competition A. Definition of Market:a group of buyers and sellers of a particular good or service. B Definition of Competitive Market:a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. Com etition:Perfect and Otherwise Charac eristics ofa perfectly competitive market Because buyers and sellers must accept the market price as given. they are often called"price takers." Agricultural markets provide good examples of perfect competition. A market with only one seller is called a poly market A market v re number of sellers.each selling proucth nly a few sellers i 6 ket w slightly different from its competitors'products,is called monopolistic competition. We will start by assuming perfect competition. II. A Definition of Quantity Demanded:the amount of a good that buyers are willing and able to purchase. B. What Determines the Quantity an Individual Demands? Price Definition of Law of Demand:the claim that,other thing being equal,the quantity demanded of a good falls when the price of the good rises. Income Definition of Normal Good:a good for which.other things equal,an increase in inco ase in demand b. Definitio 1ofInfierno ngs equal,an increase in income leads toa decrease in demand Prices of Related Goods a Definition of substitutes:two goods for which an increase in the price of one good leads to an increase in the demand for the othe b Definition of Complements:two goods for which an increase in the price of one good leads to a decrease in the demand for the other good. 4 Tastes Expectations C The Demand Schedule and the Demand Curve 8
8 （二） 教学内容 I. Markets and Competition A. Definition of Market: a group of buyers and sellers of a particular good or service. B. Definition of Competitive Market: a market in which there are many buyers and many sellers so that each has a negligible impact on the market price. C. Competition: Perfect and Otherwise 1. Characteristics of a perfectly competitive market: 2. Because buyers and sellers must accept the market price as given, they are often called “price takers.” 3. Agricultural markets provide good examples of perfect competition. 4. A market with only one seller is called a monopoly market. 5. A market with only a few sellers is called an oligopoly. 6. A market with a large number of sellers, each selling a product that is slightly different from its competitors’ products, is called monopolistic competition. D. We will start by assuming perfect competition. II. Demand A. Definition of Quantity Demanded: the amount of a good that buyers are willing and able to purchase. B. What Determines the Quantity an Individual Demands? 1. Price a. Definition of Law of Demand: the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises. 2. Income a. Definition of Normal Good: a good for which, other things equal, an increase in income leads to an increase in demand. b. Definition of Inferior Good: a good for which, other things equal, an increase in income leads to a decrease in demand. 3. Prices of Related Goods a. Definition of Substitutes: two goods for which an increase in the price of one good leads to an increase in the demand for the other good. b. Definition of Complements: two goods for which an increase in the price of one good leads to a decrease in the demand for the other good. 4. Tastes 5. Expectations C. The Demand Schedule and the Demand Curve
Definition of Demand Schedule:a table that shows the relationship between the price of a good and the quantity demanded. 2. Definition of Demand Curve:a graph of the relationship between the nanded D Ceteris Paribus Definition of Ceteris Paribus:a Latin phrase,translated as"other things being equal,"used as a reminder that all variables other than the ones being studied are assumed to be constant. Market Demand Versus Individual Demand The arket demand is the sum of all of the individual demands for a particular good or service Shifts in the Demand Curve When any determinant of demand changes (other than price),the demand curve will shift. Supply A. Definition of Quantity Supplied:the amount of a good that sellers are willing and able to sell. B. What Determines the Quantity an Individual Supplies? 1. Price Definition of Law of Supply:the claim that,other things equal,the quantity supplied ofa good rises when the price of the good rises Input Prices Technology 4 Expectations The Supply Schedule and the Sup oly Curv 1 of Supply Schedule a table that shows the relationship between the price of a good and the quantity supplied Definition of Supply Curve:a graph of the relationship between the price of a good and the quantity supplied D Market Supply Versus Individual Supply The market supply curve can found by summing individual supply curves Shifts in the Supply Curve When any determinant of supply changes (other than price).the supply curve will shift. IV Supply and Demand Together Equilibrium The point where the supply and demand curves intersect is called the market's equilibrium. Definition of Equilibrium:a situation in which supply and demand 9
9 1. Definition of Demand Schedule: a table that shows the relationship between the price of a good and the quantity demanded. 2. Definition of Demand Curve: a graph of the relationship between the price of a good and the quantity demanded. D. Ceteris Paribus Definition of Ceteris Paribus: a Latin phrase, translated as “other things being equal,” used as a reminder that all variables other than the ones being studied are assumed to be constant. E. Market Demand Versus Individual Demand The market demand is the sum of all of the individual demands for a particular good or service. F. Shifts in the Demand Curve When any determinant of demand changes (other than price), the demand curve will shift. III. Supply A. Definition of Quantity Supplied: the amount of a good that sellers are willing and able to sell. B. What Determines the Quantity an Individual Supplies? 1. Price Definition of Law of Supply: the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises. 2. Input Prices 3. Technology 4. Expectations C. The Supply Schedule and the Supply Curve 1. Definition of Supply Schedule: a table that shows the relationship between the price of a good and the quantity supplied. 2. Definition of Supply Curve: a graph of the relationship between the price of a good and the quantity supplied. D. Market Supply Versus Individual Supply The market supply curve can be found by summing individual supply curves. E. Shifts in the Supply Curve When any determinant of supply changes (other than price), the supply curve will shift. IV. Supply and Demand Together A. Equilibrium 1. The point where the supply and demand curves intersect is called the market’s equilibrium. 2. Definition of Equilibrium: a situation in which supply and demand
have been brought into balance. Definition of Equilibrium Price:the price that balances supply and demand 4 The equilibrium price is often called the "market-clearing"price because both buyers and sellers are satisfied at this price. Definition of Equilibrium Quantity:the quantity supplied and the quantity demanded when the price has adjusted to balance supply and demand. 6. If the actual market price is higher than the equilibrium price.there will be a surplus of the goo 1 If the actual price is lower than the equilibrium price,there will be a shortage of the good. 8 Definition of the Law of Supply and Demand:the claim that the price of any good adjusts to bring the supply and demand for that good into bala B Three Steps to Analyzing Changes in Equilibrium D. Shifts in Curves Versus Movements Along Curves V Conclusion:How Prices Allocate Resources A The model of supply and demand is a powerful tool for analyzing markets. Supply and demand together determine the price of the economy's good and services 1. These prices serve as signals that guide the allocation of scarce resources in the economy. Prices determine who produces each good and how much of each god isproduced. (三) 课后练习 1.Suppose that the price of basketball tickets at your college is determined by market forces PRICE QUaNTITY DEMANDED QUANTITY SUPPLIED 4 10.,000 8,000 8.000 8.000 12 6.000 8.000 6 4.000 8000 20 2.000 8,000 a.Draw the demand and supply curves.What is unusual about this supply curve?Why might this be true? b.What are the equilibrium price and quantity of tickets? c.Your college plans to increase total enrollment next vear by 5.000 students.The additional students will have the following demand schedule PRICE QUANTITY DEMANDED 10
10 have been brought into balance. 3. Definition of Equilibrium Price: the price that balances supply and demand. 4. The equilibrium price is often called the “market-clearing” price because both buyers and sellers are satisfied at this price. 5. Definition of Equilibrium Quantity: the quantity supplied and the quantity demanded when the price has adjusted to balance supply and demand. 6. If the actual market price is higher than the equilibrium price, there will be a surplus of the good. 7. If the actual price is lower than the equilibrium price, there will be a shortage of the good. 8. Definition of the Law of Supply and Demand: the claim that the price of any good adjusts to bring the supply and demand for that good into balance. B. Three Steps to Analyzing Changes in Equilibrium D. Shifts in Curves Versus Movements Along Curves V. Conclusion: How Prices Allocate Resources A. The model of supply and demand is a powerful tool for analyzing markets. B. Supply and demand together determine the price of the economy’s goods and services. 1. These prices serve as signals that guide the allocation of scarce resources in the economy. 2. Prices determine who produces each good and how much of each good is produced. （三） 课后练习 1. Suppose that the price of basketball tickets at your college is determined by market forces. Currently, the demand and supply schedules are as follows: PRICE QUANTITY DEMANDED QUANTITY SUPPLIED $ 4 10,000 8,000 8 8,000 8,000 12 6,000 8,000 16 4,000 8,000 20 2,000 8,000 a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true? b. What are the equilibrium price and quantity of tickets? c. Your college plans to increase total enrollment next year by 5,000 students. The additional students will have the following demand schedule: PRICE QUANTITY DEMANDED