03 How Hewlett-Packard Manages the Demand for Printers 管理经济学 教学课件.pptVIP

Where Prices Come From:The Interaction of Demand and Supply How Hewlett-Packard Managesthe Demand for Printers After studying this chapter, you should be able to: Discuss the variables that influence demand. Discuss the variables that influence supply. Use a graph to illustrate market equilibrium. Use demand and supply graphs to predict changes in prices and quantities. The Demand Side of the Market The Demand of an Individual Buyer The Demand Side of the Market Demand schedule A table showing the relationship between the price of a product and the quantity of the product demanded. Demand curve A curve that shows the relationship between the price of a product and the quantity of the product demanded. The Demand Side of the Market Individual Demand and Market Demand The Demand Side of the Market The Law of DemandThe Law of Demand Holding everything else constant, when the price of a product falls, the quantity demanded of the product will increases, and when the price of a product rises, the quantity demanded of the product will decrease. What Explains the Law of Demand?Substitution effect The change in the quantity demanded of a good that results from a change in price making the good more or less expensive relative to other goods that are substitutes.Income effect The change in the quantity demanded of a good that results from the effect of a change in the good’s price on consumer purchasing power. The Demand Side of the Market Holding Everything Else Constant:The Ceteris Paribus ConditionCeteris paribus (“all else equal”) The requirement that when analyzing the relationship between two variables—such as price and quantity demanded—other variables must be held constant. The Demand Side of the Market Price of related goods Substitutes Goods and services that can be used for the same purpose. Complements Goods that are used together. Income Normal good A good for which the demand increases as income rises and decreases as income fal