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 1010 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