TheMarketForcesofSupplyandDemand-…供給與需求的市場(chǎng)力量-…

Questionfromlastyear’sfinal…

SmithandJonescompriseatwo-personeconomy.Theirhourlyratesofproductionareshownbelow.

TheopportunitycostofanextracalculatorforSmithis__________andforJonesitis__________. A).10computers;.05computers B)10computers;6computers C)1computer;.5computers D).6computers;1.2computers E).05computers;.10computersWhohasthecomparativeadvantage?GiventwoproducerswithPPC’sofdifferentslopes,theproducerwiththeFLATTER

curvehasthecomparativeadvantageinthegoodmeasuredalongtheHORIZONTAL.FuelEfficiencyStandardsShouldtheybelegislated?Winners?Losers?Anyalternative?2. Inthelong-runiftheproductionofallgoodsincreasesforasociety(thereisaeconomicgrowth),itwillcausetheproductionpossibilitycurveto A) shiftinward B) shiftoutward C) firstshiftinwardandthenshiftoutward D) staythesame E) noneoftheaboveSupply,DemandandMarketEquilibriumCompetitiveMarketLotsofbuyersandsellersdealinginidenticalgoods,andenjoyingwell-definedpropertyrights.LawofDemand:P↓→QD↑MarketDemandastheSumofIndividualDemandsShiftsintheDemandCurveShiftFactorsforDemandIncome.Numberofbuyers.Pricesofrelatedgoods(substitutesandcomplements).Expectations.Demographicchanges.Tastes/Preferences.ShiftsintheDemandCurveversusMovementsalongtheDemandCurveFigure3HowthePriceAffectsConsumerSurplusCopyright?2003Southwestern/ThomsonLearningConsumersurplusQuantity(a)ConsumerSurplusatPricePPrice0DemandP1Q1BACFigure3HowthePriceAffectsConsumerSurplusCopyright?2003Southwestern/ThomsonLearningInitialconsumersurplusQuantity(b)ConsumerSurplusatPricePPrice0DemandABCDEFP1Q1P2Q2ConsumersurplustonewconsumersAdditionalconsumersurplustoinitialconsumers3.WhichofthefollowingwillNOTcauseashiftinthedemandcurveforAthlonprocessors(PentiumIIIprocessorsaresubstitutesforAthlonprocessors,processorsareamajorpartofacomputer)? A) Anincreaseinthepriceofmemory. B) AdecreaseinthepriceofPentiumIIIprocessors. C) Adecreaseinthepriceofmotherboards. D) AdecreaseinthepriceofAthlonprocessors. E) Anincreaseinconsumers'incomes.

Whenthemarketpricefor

gasolinerisesfrom$1.25to

$2.00agallon,thequantity

demandedinthemarketfallsinsignificantlyfrom8to7

millionunitsperweek.

Incontrast,whenthemarket

pricefortacosrisesfrom$1.25

to$2.00,quantitydemandedin

themarketfallssignificantly

from8to4millionunitsper

week.ElasticandInelasticDemandCurves$2.00$1.25DTaco

market123456789$1.00Gasoline

marketD123456789$2.00$1.25$1.00Quantity

(tacos)Quantity

(gasoline)PricePriceMarketSupplyastheSumofIndividualSuppliesMarketSupplyastheSumofIndividualSuppliesShiftsintheSupplyCurveShiftFactorsforSupplyInputprices.Technology.Weather,naturaldisasters&politicaldisruptions.Taxes.Numberofsellers.Expectations.Figure6HowthePriceAffectsProducerSurplusCopyright?2003Southwestern/ThomsonLearningProducersurplusQuantity(a)ProducerSurplusatPriceP

Price0SupplyBACQ1P1Figure6HowthePriceAffectsProducerSurplusCopyright?2003Southwestern/ThomsonLearningQuantity(b)ProducerSurplusatPriceP

Price0P1BCSupplyAInitialproducersurplusQ1P2Q2ProducersurplustonewproducersAdditionalproducersurplustoinitialproducersDEFWhenthemarketpricefor

softdrinksincreasesfrom

$1.00to$1.50asix-pack,the

quantitysuppliedtothemarket

risesfrom100to200million

unitsperweek.Whenthemarketpricefor

physicianservicesrisesfrom

$100to$150anofficevisit,

thequantitysuppliedrisesfrom

10to12millionvisitsperweek.

ElasticandInelasticSupplyCurves$200$150SPhysicianServicesmarket100$100Softdrink

marketS4681012$2.00$1.50$1.00Quantity

(million

visits)Quantity

(million

6-packs)PricePrice50150200216182014TheEquilibriumofSupplyandDemandMarketsNotinEquilibriumAThree-StepProgramforAnalyzingChangesinEquilibriumDecidewhethertheeventshiftsthesupplyordemandcurve(orperhapsboth).Decideinwhichdirectionthecurveshifts.Usethesupply-and-demandtoseehowtheshiftchangestheequilibriumpriceandquantity.HowanIncreaseinDemandAffectstheEquilibriumHowaDecreaseinSupplyAffectstheEquilibriumAShiftinBothSupplyandDemandFigure7ConsumerandProducerSurplusintheMarketEquilibriumCopyright?2003Southwestern/ThomsonLearningProducersurplusConsumersurplusPrice0QuantityEquilibriumpriceEquilibriumquantitySupplyDemandACBDETheInvisibleHand

“Everyindividualiscontinuallyexertinghimselftofindoutthemostadvantageousemploymentforwhatevercapital[income]hecancommand.Itishisownadvantage,indeed,andnotthatofthesocietywhichhehasinview.Butthestudyofhisownadvantagenaturally,orrathernecessarily,leadshimto