Overview 2 It includes a brief history of economic thought regarding markets and prices. Emphasizing a core principle of the book, the chapter next discusses the concept of equilibrium. It explains how market forces bring the price and quantity back to equilibrium in the case of surpluses and shortages and includes discussion of price controls(price ceilings and floors). Finally, the chapter explains how to use the supply and demand model to explain changes in prices and quantities Chapter 3-Supply and Demand: An Introduction Slide 4MB MC Chapter 3 - Supply and Demand: An Introduction Slide 4 Overview 2 ◼ It includes a brief history of economic thought regarding markets and prices. Emphasizing a core principle of the book, the chapter next discusses the concept of equilibrium. It explains how market forces bring the price and quantity back to equilibrium in the case of surpluses and shortages and includes discussion of price controls (price ceilings and floors). Finally, the chapter explains how to use the supply and demand model to explain changes in prices and quantities