Supply and demand chapter 18 check 3
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Supply and Demand Chapter 18 Check 3 PowerPoint PPT Presentation


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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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Supply and Demand Chapter 18 Check 3

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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

-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


firms/businesses will find at equilibrium….

-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


What should a business do at excess demand?

-Increase the price


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?

-Buy less or buy an alternative


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


    The government tried to work price floors into agriculture in past years…

    -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


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