Microeconomics,, 16th Canadian Edition

variable) on the vertical axis. This is “backward” to what is usually done in mathematics. The rational explanation of what is n ...

Short-Run Equilibrium in a Competitive Market Changes in any of the variables, other than price, that influence quantity demande ...

Figure 3-8 Shifts in Demand and Supply Curves change to be studied. We then determine the new equilibrium position and compare i ...

demand shifts the demand curve to taking the new equilibrium to Price rises to and quantity rises to Starting at a decrease in d ...

price. This rise in price causes a larger quantity to be supplied, with the result that at the new equilibrium more is exchanged ...

By using the tools we have learned in this chapter, we can link many real- world events that cause demand or supply curves to sh ...

4 The term static is used because we are not concerned with the actual path by which the market goes from the first equilibrium ...

A Numerical Example Changes in market equilibrium can also be examined by using a simple algebraic model. For example, consider ...

which can be rewritten to get: The equilibrium price for potatoes is therefore $16 per crate. To find the equilibrium quantity, ...

money price. A relative price is the ratio of two absolute prices; it expresses the price of one good in terms of (relative to) ...

Summary ...

3.1 Demand LO 1, 2 The amount of a product that consumers want to purchase is called quantity demanded. It is a flow expressed a ...

3.2 Supply LO 3, 4 The amount of a good that producers wish to sell is called quantity supplied. It is a flow expressed as so mu ...

3.3 The Determination of Price LO 5 The equilibrium price is the price at which the quantity demanded equals the quantity suppli ...

Key Concepts Stock and flow variables Ceteris paribus or “other things being equal” Quantity demanded Demand curve Change in qua ...

Study Exercises MyLab Economics Make the grade with MyLab Economics™: All Study Exercises can be found on MyLab Economics™. You ...

Fill-in-the-Blank 1. Fill in the blanks to make the following statements correct. a. The term quantity demanded refers to purcha ...

a. The term quantity supplied refers to sales by producers, whereas quantity exchanged refers to sales by producers. b. Quantity ...

curve for lumber will shift to the , indicating a(n) in. c. Consider the market for Quebec artisanal cheeses. If, ceteris paribu ...

e. An increase in demand for some product will usually cause its equilibrium price to and also cause an increase in. f. A decrea ...