ECSENOMICS Chapter 3 Basic elements of supply and demand McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3 Basic Elements of Supply and Demand
ECSENOMICS Gasoline Prices move with demand and Supply Changes 1-15 Figure 3-1 250 6品25258 ⊥⊥⊥⊥⊥⊥1 1970 1975 1980 1985 1990 1995 2000 McGraw-Hilllrwin Source: U.S. Department of Energy and Labor
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. T-15 Figure 3-1 Gasoline Prices Move with Demand and Supply Changes Source: U.S. Department of Energy and Labor
ECSENOMICS A Downward-Sloping Demand Curve C Relates Quantity Demanded to Price T-16 Figure 3-2 P Quantity of cornflakes(millions of boxes per year) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. A Downward-Sloping Demand Curve Relates Quantity Demanded to Price T-16 Figure 3-2
ECSENOMICS Declining Computer Prices Have Fueled an Explosive Growth in Computer Power 1-17 Figure 3-3 1972 0. 0.01 Computer outpus billions er 199o dollars) McGraw-Hilllrwin Source: De partment ofComme rce estimates of real output and prices
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Declining Computer Prices Have Fueled an Explosive Growth in Computer Power T-17 Figure 3-3 Source: Department of Commerce estimates of real output and prices. Note that the data are plotted on ratio scales
ECSENOMICS Increase in Demand for Automobiles T-18 Figure 3-4 14 10 6 2 D 0 16 20 24 Quantity demanded of automobiles (millions per year) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Increase in Demand for Automobiles T-18 Figure 3-4
ECSENOMICS Supply curve relates Quantity Supplied to Price 1-19 Figure 3-5 22=968 5 Q 20 Quantity of cornflakes(millions of boxes per year) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Supply Curve Relates Quantity Supplied to Price T-19 Figure 3-5
ECSENOMICS Increased Supply of Automobiles T20 Figure 3-6 12 9v5岁 8 6 4 4812162024 Quantity supplied of automobiles (millions per year) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Increased Supply of Automobiles T-20 Figure 3-6
ECSENOMICS Market Equilibrium Comes at the Intersection of Supply and Demand Curves T21 Figure 3-7 D 33> A Equilibrium point Shorta Q 10 15 20 Quantity(millions of boxes per year) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Market Equilibrium Comes at the Intersection of Supply and Demand Curves T-21 Figure 3-7
ECSENOMICS Shifts in Supply or Demand Change S Equilibrium Price and Quantity T22 Figure 3-8 (a)Supply Shift (b) Demand Shift Q Quantity McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Shifts in Supply or Demand Change Equilibrium Price and Quantity T-22 Figure 3-8
ECSENOMICS Shifts of and movements along Curves T23 Figure 3-9 a)Shift of Demand b) Movement along Demand Curve McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Shifts of and Movements along Curves T-23 Figure 3-9
