微观经济学（N. Gregory Mankiw）教学课件ch4.pdfVIP

C H A P T E R 4 Economics © 2009 South-Western, a part of Cengage Learning, all rights reserved C H A P T E R 4 Economics bannannan@dufe.edu.cn © 2009 South-Western, a part of Cengage Learning, all rights reserved Supply and demand are the two words economists use most often. Supply and demand are the forces that make market economies work. This chapter introduces the theory of supply and demand. It considers how buyers and sellers behave and how they interact with one another. It shows how supply and demand determine prices in a market economy and how prices allocate the economy ’s scarce resource. THE MARKET FORCES OF SUPPLY AND DEMAND 2 Markets Demand Supply Supply and demand together THE MARKET FORCES OF SUPPLY AND DEMAND 3 Market The terms supply and demand refer to the behavior of people as they interact with one another in markets. A market is a group of buyers and sellers of a particular good or service. The buyers as a group determine the demand for the product, and the sellers as a group determine the supply of the product. THE MARKET FORCES OF SUPPLY AND DEMAND 4 Market Type Perfect competition Monopolistic competition Oligopoly Monopoly THE MARKET FORCES OF SUPPLY AND DEMAND 5 Perfect Competition Assumptions: The buyers and sellers are so numerous. The goods offered for sale are all exactly the same. All factors are fully flowing. Information is perfect. THE MARKET FORCES OF SUPPLY AND DEMAND 7 The buyers and sellers are so numerous. Each buyer purchases