market economy
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Laws of market economy презентация
Содержание
- 1. Laws of market economy
- 2. Theory of Demand Theory of Supply
- 3. Demand for a commodity Depends on size
- 4. How are price and demand related for
- 5. Horizontal Summation of Individual Demand Curves Negatively
- 6. Change in demand Change in quantity Demanded Market Demand
- 7. Monopolist WAPDA Perfect Competition No true
- 8. Oligopoly Few firms with standardized or differentiated
- 9. Firms selling durable goods face more volatile
- 10. Demand function faced by a firm QD=
- 11. Theory of Demand Theory of Supply
- 12. The quantity sellers are willing to sell
- 13. The higher the price, greater is the
- 14. Horizontal Summation of Individual Supply Curves
- 15. Change in supply Change in quantity supplied Market Supply
- 16. Theory of Demand Theory of Supply
- 17. Equilibrium exists when quantity sellers are willing
- 18. Surplus - Results in downward pressure on the price
- 19. Theory of Demand Theory of Supply
- 20. Public Sector Services Monopolies Restrictions and Barriers
- 21. What would be the equilibrium price and
Theory of Demand Theory of Supply Market Equilibrium Government Intervention in the Market Laws of market economy
Слайд 1Theory of Demand
Theory of Supply
Market Equilibrium
Government Intervention in the Market
Laws of
Слайд 2
Theory of Demand
Theory of Supply
Market Equilibrium
Government Intervention in the Market
Laws of
market economy
Слайд 3Demand for a commodity
Depends on size of the market (Industry Demand
for the commodity)
Summation of Individual level Demand
Related to Consumer Choice Theory
Consumer Demand Theory Qd= f (Px, I, Py,T)
Summation of Individual level Demand
Related to Consumer Choice Theory
Consumer Demand Theory Qd= f (Px, I, Py,T)
Demand of a Commodity
Слайд 4How are price and demand related for a good? (law of
demand)
Normal Goods
Inferior Goods
Example: Suzuki Mehran
Effect of price of substitute and complementary goods
Effect of Change in Income and Tastes
Assuming everything else fixed…………….
Normal Goods
Inferior Goods
Example: Suzuki Mehran
Effect of price of substitute and complementary goods
Effect of Change in Income and Tastes
Assuming everything else fixed…………….
Individual Demand
Слайд 5Horizontal Summation of Individual Demand Curves
Negatively sloped, why?
Inverse relation between price
and quantity
QD= F(Px, I, N, Py, T)
Bandwagon Effect and Snob Effect
QD= F(Px, I, N, Py, T)
Bandwagon Effect and Snob Effect
Market Demand
Слайд 7Monopolist
WAPDA
Perfect Competition
No true example exists (Small scale farmers producing homogeneous wheat
in USA)
Horizontal demand curve, why?
Horizontal demand curve, why?
Demand Faced by A Firm
Слайд 8Oligopoly
Few firms with standardized or differentiated product
Monopolistic Competition
Heterogeneous and differentiated products
Factors
effecting Demand
Advertising, Promotional Policies, Price expectations
Advertising, Promotional Policies, Price expectations
Demand Faced by A Firm
Слайд 9Firms selling durable goods face more volatile & unstable demand
Like automobiles,
washing machines, water geezers
Why?
Consumers can wait for Availability of credit, or growth in economy
Why?
Consumers can wait for Availability of credit, or growth in economy
Demand Faced by A Firm
Слайд 10Demand function faced by a firm
QD= a0+a1Px +a2I+a3N+a4Py+ a5T……………
“a” is coefficient
to be estimated with regression analysis
Implications of estimated demand:
Types of inputs
Quantity of Inputs
Implications of estimated demand:
Types of inputs
Quantity of Inputs
Demand Faced by A Firm
Слайд 11
Theory of Demand
Theory of Supply
Market Equilibrium
Government Intervention in the Market
Laws of
market economy
Слайд 12The quantity sellers are willing to sell at a given price
level
Depends on:
Price of the commodity
Prices of inputs
Technology
Opportunity cost
Future expectations
Number of sellers
Depends on:
Price of the commodity
Prices of inputs
Technology
Opportunity cost
Future expectations
Number of sellers
Supply of a Commodity
Слайд 13The higher the price, greater is the quantity sellers are willing
to sell in the market (law of supply)
Effect of prices of inputs and changes in technology
Effect of prices of goods which can be produced with same inputs
Effect of changes in expectations of future
Assuming everything else is fixed………
Effect of prices of inputs and changes in technology
Effect of prices of goods which can be produced with same inputs
Effect of changes in expectations of future
Assuming everything else is fixed………
Individual Supply
Слайд 14Horizontal Summation of Individual Supply Curves
Positively sloped, why?
Positive relation between price
and quantity
Market Supply
Слайд 16
Theory of Demand
Theory of Supply
Market Equilibrium
Government Intervention in the Market
Laws of
market economy
Слайд 17Equilibrium exists when quantity sellers are willing to sell is equal
to the quantity buyers are willing to buy at a given price.
Market Equilibrium
Слайд 18Surplus - Results in downward pressure on the price
Shortage - Results in upward pressure on
the price
Impact of Changes in Demand on Market Equilibrium
Impact of Changes in Supply on Market Equilibrium
Impact of Changes in Demand on Market Equilibrium
Impact of Changes in Supply on Market Equilibrium
Market Equilibrium
Слайд 19
Theory of Demand
Theory of Supply
Market Equilibrium
Government Intervention in the Market
Laws of
market economy
Слайд 20Public Sector Services
Monopolies
Restrictions and Barriers to Entry
Reducing Trade Barriers Vs Import
Tariffs
Taxation
Subsidies and Welfare payments
Laws and Regulations
Taxation
Subsidies and Welfare payments
Laws and Regulations
Role of the Government
Слайд 21What would be the equilibrium price and quantity in presence of
insurance?
What would happen to the demand curve of health care facilities in absence of medical insurance?
Explain the role of government in influencing the market of health care facilities?
Explain a few scenarios in which the supply curve might shift?
What would happen to the demand curve of health care facilities in absence of medical insurance?
Explain the role of government in influencing the market of health care facilities?
Explain a few scenarios in which the supply curve might shift?
Case Study
