History with Mr. Bayne
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Supply, Demand, Price Determination

ap_macro_1-8_demand.ppt
File Size: 4324 kb
File Type: ppt
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ap_macro_1-9_shifters_of_demand.ppt
File Size: 1802 kb
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ap_macro_1-10_supply_and_shifters_of_supply.ppt
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ap_macro_1-11_supply_and_demand.ppt
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ap_macro_1-12_government_intervention_price_controls_and_taxes.ppt
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Demand
Demand refers to how much of a good or service consumers are willing to buy at different prices. 
Know: Ceteris Paribus; Law of Demand; 
a) What are some factors that determine a consumer's demands?
b) What are 'substitute' products and 'complementary' goods, and what impact do they have on demand?

This video correlates with Module 5 of Krugan's text (pp. 48-58).  
Change in Demand vs. Change in Quantity Demanded
Know the difference between a change in demand v. a change in quantity demanded. 
a) What are some factors that would cause a change in demand? 
b) What is the one factor that changes the 'quantity demanded?' 
Supply
a) What happens to quantity supplied as demand goes up? 
b) What factors affect supplier decisions (besides price)?
c) What is profitability determined by? 
d) What is the difference between a change in supply and a change in the quantity supplied? 

This information correlates with Krugman's text, module 6, which begins on page 59. 
Market Equilibrium
This video looks at the point where supply meets demand.  This is the market equilibrium.  
a) What happens to price when the amount supplied is greater than the amount demanded? 
b) What happens to price when the demand is greater than the supply?

Price Floors and Price Ceilings
Be sure to understand the purpose of both a price floor and a price ceiling.  Why would the government instill either of these, and what impact may they have on supply and demand? 
Additional Links: Explanation on Supply & Demand from investopedia
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