Transcript Chapter 3 - Web Chapter

WEB
Changes in Supply
and Demand
Lettuce
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Efficiency Losses
Key Terms
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3 Web - 1
3
C HAPTE R
WEB
Applications and
Extensions of Supply
and Demand Analysis
http://www.mcconnell16.com
Copyright McGraw-Hill/Irwin, 2005
WEB
Changes in Supply
and Demand
Lettuce
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Efficiency Losses
Key Terms
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3 Web - 2
Changes in Supply &
Demand
Single Changes
Complex Changes
Agricultural Products
Lettuce – Oranges – Cherries
Damage from Weather
Example:
Freeze of Lettuce Crops
Graphically…
Copyright McGraw-Hill/Irwin, 2005
WEB
Changes in Supply
and Demand
Lettuce Supply & Demand
Crop Freezing Damage…
P
S2
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Efficiency Losses
Price (per pound)
Lettuce
S1
P2
P1
Key Terms
D1
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3 Web - 3
o
Q2
Q1
Quantity
Copyright McGraw-Hill/Irwin, 2005
Q
WEB
Changes in Supply
and Demand
American Flags
Patriotism Surge…
P
S1
Lettuce
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Price (per flag)
American Flags
P2
P1
Efficiency Losses
D2
Key Terms
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3 Web - 4
D1
o
Q1
Q2
Quantity
Copyright McGraw-Hill/Irwin, 2005
Q
WEB
Changes in Supply
and Demand
Pink Salmon
Increase in Supply & Decrease in Demand
P
S1
Lettuce
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Efficiency Losses
Price (per fish)
American Flags
S2
P1
P2
D1
Key Terms
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D2
o
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Q1 Q2
Quantity
Q
WEB
Changes in Supply
and Demand
Gasoline
Decrease in Supply & Increase in Demand
P
S2 S1
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Price (per gallon)
Lettuce
P2
P1
Efficiency Losses
D2
Key Terms
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D1
o
Copyright McGraw-Hill/Irwin, 2005
Q1 Q 2
Quantity
Q
WEB
Changes in Supply
and Demand
Sushi
Increase in Demand & Increase in Supply
P
S1
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Price (per pound)
Lettuce
S2
P1
Efficiency Losses
D2
Key Terms
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D1
o
Q1
Q2
Quantity
Copyright McGraw-Hill/Irwin, 2005
Q
WEB
Changes in Supply
and Demand
Preset Prices
Olympic Figure Skating Finals Tickets
P
S
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Efficiency Losses
Price (per ticket)
Lettuce
P2
Predetermined
Price
P1
Key Terms
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Equilibrium
Price
Shortage
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Copyright McGraw-Hill/Irwin, 2005
Q1
Quantity
Q2
D
Q
WEB
Changes in Supply
and Demand
Preset Prices
Olympic Curling Preliminaries Tickets
P
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Efficiency Losses
Price (per ticket)
Lettuce
Surplus
S
Predetermined
Price
P1
Equilibrium
Price
P2
Key Terms
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D
o
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Q2
Q1
Quantity
Q
WEB
Changes in Supply
and Demand
Nonpriced Goods
The American Bison Before the Railroad
P
Lettuce
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
D
Price (per bison)
American Flags
No Price Is
Determined
Surplus
& No Market
Exists!
Efficiency Losses
Key Terms
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S
o
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Q1
Q2
Quantity
Q
WEB
Changes in Supply
and Demand
Nonpriced Goods
The American Bison After the Railroad
P
D
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Shortage
Efficiency Losses
Key Terms
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S
Price (per bison)
Lettuce
o
Copyright McGraw-Hill/Irwin, 2005
Price of 0
Led to Excess
Demand and
Shortages
Occurred
Q3
Q4
Quantity
Q
WEB
Changes in Supply
and Demand
Transaction Surpluses
Consumer Surplus - Oranges
P
Consumer
Surplus
Lettuce
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Price (per bag)
American Flags
P1
Equilibrium
Price = $8
Efficiency Losses
Key Terms
D
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Copyright McGraw-Hill/Irwin, 2005
Q1
Quantity (bags)
Q
WEB
Changes in Supply
and Demand
Transaction Surpluses
Producer Surplus - Oranges
P
Producer
Surplus
Lettuce
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Price (per bag)
American Flags
Pink Salmon
S
P1
Equilibrium
Price = $8
Efficiency Losses
Key Terms
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o
Copyright McGraw-Hill/Irwin, 2005
Q1
Quantity (bags)
Q
Changes in Supply
and Demand
Lettuce
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Maximum Combined Surpluses
S
P
Consumer
Surplus
Price (per bag)
WEB
Transaction Surpluses
P1
Producer
Surplus
Efficiency Losses
Key Terms
D
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Copyright McGraw-Hill/Irwin, 2005
Q1
Quantity (bags)
Q
WEB
Changes in Supply
and Demand
Transaction Surpluses
Efficiency Losses
P
Quantity
Below the
Equilibrium
Lettuce
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Price (per bag)
American Flags
S
Quantity
Above the
Equilibrium
Efficiency Losses
Key Terms
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Copyright McGraw-Hill/Irwin, 2005
Q2
Q1
Q3
Quantity (bags)
Q
WEB
Changes in Supply
and Demand
Transaction Surpluses
Efficiency Losses
P
Quantity
Below the
Equilibrium
Lettuce
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Price (per bag)
American Flags
S
Quantity
Above the
Equilibrium
Efficiency Losses
Key Terms
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Q2
Q1
Q3
Quantity (bags)
Q
Key Terms
nonpriced goods
consumer surplus
producer surplus
efficiency losses
Copyright McGraw-Hill/Irwin, 2005
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END
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Changes in Supply
and Demand
Lettuce
American Flags
Pink Salmon
Gasoline
Sushi
Preset Prices
Nonpriced Goods
Transactions
Surpluses
Efficiency Losses
Key Terms
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3 Web - 18
Chapter 4
Copyright McGraw-Hill/Irwin, 2005