Supply and Demand Chapter 18 Check 3

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# Supply and Demand Chapter 18 Check 3 - PowerPoint PPT Presentation

Supply and Demand Chapter 18 Check 3. Yeee haaa!!! I love notes!!!! Write everything in yellow. That will pretty much be everything. Draw this chart on your paper. A Demand Schedule. - How much consumers are willing to buy at various prices. A Supply Schedule.

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Presentation Transcript
Supply and Demand Chapter 18 Check 3
• Yeee haaa!!! I love notes!!!!
• Write everything in yellow. That will pretty much be everything.
A Demand Schedule

-How much consumers are willing to buy at various prices

A Supply Schedule

-How much sellers are willing to sell at various prices

Equilibrium

-Point of balance between price and quantity

buyers will find on shelves at equilibrium…..

-There will be ample supply on shelves

-There will be enough buyers for their goods

Disequilibrium occurs when…

-When quantity supplied is not equal to quantity demanded

Excess Demand is….

-Quantity demanded is more than the quantity supplied

What will happen to customers at excess demand?

-They will have to wait in long lines or not get the product they want

Excess Supply

-Quantity supplied exceeds the quantity demanded

The cause of excess supply..

-High prices or excess or over production

What will customers do at excess supply?

Price Ceiling

-Maximum price set by law that sellers can charge for a good or service

An example of a price ceiling is...

-Rent Control, can only charge so much

problems that price ceilings cause
• -Reduces quantity and quality
• -Waiting lists, discrimination, and bribery
Price Floors

-Minimum price set by the government that must be paid

Example…..

-Minimum Wage

if price floors are set wrong……

-Decrease in employment and benefits

-Prices of products increase sharply

-Minimum price set, but if it goes below then the government creates demand by purchasing excess crops

Now, a better idea….

-Provides emergency financial aid to farmers