Module 3: Supply and Demand Why It Matters: Supply and Demand Economic Systems What Is Demand? Factors Affecting Demand What is Supply? Factors Affecting Supply Equilibrium, Surplus, and Shortage Changes in Equilibrium Finding Equilibrium Changes in Supply and Demand Putting It Together: Supply and ...
Describe and differentiate between major economic systems Explain the determinants of demand Explain the determinants of supply Explain and graphically illustrate market equilibrium, surplus and shortage Elasticity: Measure how changes in price and income affect the behavior of buyers and sellers ...
the demand for that commodity will surge. The quantity supplied will not be enough to cater to the quantity demanded, resulting in excess demand or shortage. The producers will realize that they have an opportunity to sell whatever quantity they have at a higher price and make profits. ...
surplus: excess supply - happens when the qty supplied > qty demanded - downward pressure on the price (price cuts) shortage: qty demanded > qty supplied - upward pressure on price because sellers can raise the price without losing any sales ...
Consequently, there would be a surplus or excess supply. Conversely, if the price falls below the equilibrium price, the consumers will buy more of a commodity than would they would at the equilibrium price, and so demand would exceed supply. Consequently, there would be a shortage or excess...
shortage = QD - QScause: price ceiling Surplus too high above the equilibrium price, suppliers supply more than demanders demandsurplus = QS - QDcause: price floor Signs that Markets Perhaps Are Not in Equilibrium 1) Long lines; 2) Bundling of extras; 3) Secondary markets demand and supply...
(a) Calculate the total producer surplus at the market equilibrium price and quantity. Show your work. Solution: $20 \times 20 \div 2 = 200$ dollars (b) If the government imposes a price floor at $16, is there a shortage, a surplus, or neither? Explain ...
Define a surplus and shortage. b. Explain (using graphs where appropriate) how changes in underlying conditions and shocks to a competitive market can alter price, quantity, consumer surplus, and producer surplus. c. Calculate (using data from a graph or table as appropriate) changes in ...
price, what will happen, shortage or surplus? And how much will be the shortage or surplus? c) Suppose the government wants to keep the price at the level as you solved in part (a). But instead of a price ceiling, the government is considering using tax or subsidy to achieve ...
PaulA.Samuelson（萨缪尔森）andWilliamD.Nordhaus（诺德豪斯）：Economics，第17版，人民邮电出版社（中文版），2004年。N.GregoryMankiw(曼昆）：ThePrinciplesofEconomics(经济学原理)。WilliamBaumol（鲍莫尔）andAlanBlinder：Economics－principlesandpolicy(经济学：原理与政策)。2 2014-2-6 Economics Re...