Revisiting the Market Equilibrium Do the equilibrium price and quantity maximize the total welfare of buyers and sellers? Market equilibrium reflects the way markets allocate scarce resources. Whether the market allocation is desirable is determined by welfare economics

Importance of Supply-Demand Analysis A little knowledge goes a long way: Price Control, Taxation and other policies. Market welfare: Normative Analysis International Trade Externality (Market Failure) Market Power (Market Failure) Other markets: Financial Market, Labor Market. Macroeconomics

国家开放大学：2013—2014学年第一学期“开放本科”行政管理专业政府经济学期末试题（1月）

国家开放大学：2013—2014学年第一学期“开放专科”现代文员专业简明经济学教程期末试题（1月）

国家开放大学：2013—2014学年第一学期“开放专科”旅游酒店专业旅游经济学期末试题（开卷）

国家开放大学：2013—2014学年第一学期“开放专科”农村经济管理专业初级经济学期末试题（1月）

Elasticity… … is a measure of how much buyers and sellers respond to changes in market conditions … allows us to analyze supply and demand with greater precision

The Market Forces of Supply and Demand Supply and Demand are the two wordsthat economists use most often. Supply and Demand are the forces thatmake market economies work. Modern microeconomics is about supply,demand and equilibrium

Interdependence and Trade Consider your typical day: – You wake up to a alarm clock made in Wenzhou – You put on some clothes made of cotton grown in Xinjiang and sewn in factories in Fujian Province

Outline The Economist as Scientist The Economist as Policy Adviser Why Economists disagree