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Bec doms ppt on supply and demand
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Supply and Demand
Figure 2.01 A Demand Curve
p, $ per kg
200 220
Demand curve for pork, D1
240 286
Q, Million kg of pork per year
0
2.30
3.30
4.30
14.30
Figure 2.02 A Shift of the Demand Curve
p, $ per kg
220176
Effect of a 60¢ increase in the price of beef
D1
D 2
232
Q, Million kg of pork per year
0
3.30
Application Aggregating the Demand for Cling Peaches
p, $ per ton
50
Q, Tons of peaches per 10,000 people per year
0
275
183
Total demand
Demand for canned peaches
Demand for fruit cocktail
Qc = 18 Q = 22Qf = 4
Figure 2.03 A Supply Curve
p, $ per kg
220176
Supply curve, S1
300
Q, Million kg of pork per year
0
3.30
5.30
Figure 2.04 A Shift of a Supply Curve
p, $ per kg
205176
Effect of a 25¢ increase in the price of hogs
S1S2
220
Q, Million kg of pork per year
0
3.30
Figure 2.5 Total Supply: The Sum of Domestic and Foreign Supply
p, Priceper ton
p, Priceper ton
p, Priceper ton
Qd*
Sd S f (ban)
Qf* Q = Qd
* Q* = Qd* + Qf
*
Qd, Tons per year Qf, Tons per year Q, Tons per year
(a) Japanese Domestic Supply (b) Foreign Supply (c) Total Supply
p * p* p *
S (ban) S (no ban)S f (no ban)
p p p
Solved Problem 2.1
p, Priceper ton
p, Priceper ton
p, Priceper ton
S d
Q, Tons per year
(a) U.S. Domestic Supply (b) Foreign Supply (c) Total Supply
p* p* p*
p p p
S
S
Qd Qf
Qd, Tons per year Qf , Tons per year
Qd* Qf*
Sf
Sf
Qd* + Qf*Qd* + QfQd + Qf
Figure 2.06 Market Equilibrium
p, $ per kg
220176
D
S
e
233 246194 207
Q, Million kg of pork per year
0
3.95
3.30
2.65
Excess supply = 39
Excess demand = 39
Figure 2.07a Effects of a Shift of the Demand Curve
D 1
D2
S
1760 220 228 232
Q, Million kg of pork per yearExcess demand = 12
3.303.50
e2
e1
p, $ per kg
(a) Effect of a 60¢ Increase in the Price of Beef
Figure 2.07b Effects of a Shift of the Demand Curve
S1
S2
Q, Million kg of pork per year
3.303.55
e1
e2
D
p, $ per kg
(b) Effect of a 25¢ Increase in the Price of Hogs
1760 220205 215
Excess demand = 15
Figure 2.08 A Ban on Rice Imports Raises the Price in Japan
p, Price of riceper pound
Q2 Q1
S (no ban)
D
Q, Tons of rice per year
p2 e2
e1p1
S (ban)
Solved Problem 2.3
p, Price ofsteel per ton
Q2Q3
D h (high)
Q1
S (no quota)
Q, Tons of steel per year
p2
p3 e2
e3
e1p1
S (quota)
p
D l (low)
Figure 2.09 Price Ceiling on Gasoline
p, $ per gallon
Qs Q2 Q1 = Qd
Price ceiling
S1
D
S 2
Q, Gallons of gasoline per monthExcess demand
p2
e2
e1p1 = p
Figure 2.10 Minimum Wage
w, Wageper hour
Ld L* Ls
Minimum wage, price floor
S
D
L, Hours worked per year
Unemployment
ew *
w