macroeconomics chapter 3 supply and demand powerpoint® slides by can erbil © 2004 worth...
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MacroeconomicsCHAPTER 3
Supply and Demand<Review Slides>
PowerPoint® Slides by Can Erbil
© 2004 Worth Publishers, all rights reserved© 2004 Worth Publishers, all rights reserved
2
Supply and Demand
Competitive market The supply and demand model
The demand curveThe supply curveFactors that cause the demand curve to shift, and factors that cause the supply curve to shiftThe equilibrium priceHow the equilibrium price changes when the supply and demand curves shift
3
The Law of Demand
Higher price for a good, other things equal, leads people to demand a smaller quantity of the good.
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What causes a demand curve to shift? Changes in the Prices of Related
Goods Substitutes Complements
Changes in Income Normal Goods Inferior Goods
Changes in Tastes Changes in Expectations
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What causes a supply curve to shift? Changes in Input Prices
An input is a good that is used to produce another good.
Changes in Technology
Changes in Income
Changes in Expectations
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