16466 Chapter Notes - Chapter 4: Economic Equilibrium, Market Failure, Overproduction
Document Summary
Economics for today markets in action chapter 4. Key points: changes in market equilibrium, changes in demand, changes in supply, price ceilings, price floors, market failure. Changes in supply: changes in prices and quantities sold in markets primarily occur because of: If one of the non-price determinants of demand (in chapter 3) changes, then the equilibrium price and quantity will change. An increase in a non-price determinant of demand will raise the price and quantity supply. A decrease in a non-price determinant of demand will lower the price and quantity supply. Increase in demand increase in equilibrium price increase in quantity supplied. Decrease in demand decrease in equilibrium price decrease in quantity supplied. If one of the non-price determinants of supply (in chapter 3) changes, then the equilibrium price and quantity will change. An increase in a non-price determinant of supply will lower the price and increase the quantity supply.
