Chapter 3

Supply and Demand

In this chapter we explore the single most important model in modern economic: the Supply and Demand model of the determination of price and production in a highly competitive industry.

Begin the chapter

Overheads for this chapter

Check your understanding -- multiple-choice questions

You Need to Know

To understand this chapter, you will need some concepts from chapter 1 and chapter 2.

Contents

  1. Introduction
  2. Natural Price: Context in the Reasonable Dialog
  3. Analysis of a Market
  4. Demand
  5. Demand for Beer
  6. Law of Demand
  7. Supply
  8. Supply in the Long Run and Short Run
  9. Equilibrium of Supply and Demand
  10. Changes in Demand
  11. Shift Factors in Demand
  12. Changes in Supply
  13. Shift Factors in Supply
  14. Application: Excise Tax
  15. Application: Subsidy
  16. Chapter Summary

Next Chapter: Demand: Elasticity and Applications

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