Chapter Outline

3.1 Demand

3.2 Supply

3.3 The Determination of Price

AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE TO

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 Learning Objectives (LO)

1. list the factors that determine the quantity demanded of a good.

2. distinguish between a shift of the demand curve and a movement

along the demand curve.

3. list the factors that determine the quantity supplied of a good.

4. distinguish between a shift of the supply curve and a movement

along the supply curve.

5. explain the forces that drive market price to equilibrium, and how

equilibrium price and quantity are affected by changes in demand

and supply.