About This Chapter
Overview of Supply and Demand in Microeconomics - Chapter Summary
Learn about pricing, market forces and market equilibrium as they relate to supply and demand in microeconomics by referring to this chapter. Lessons offer definitions, examples and relevant formulas to clearly explain what you need to know about each topic. They focus on such topics as the supply curve, price elasticity, price ceilings and shortages and surpluses. Access these lessons from any device, at any time, and check your understanding by taking brief self-assessment quizzes. Once you have completed a thorough review of this chapter, you should be able to do the following:
- Understand the meanings of supply and demand curves, explain shifts in these curves and detail how they are affected by market changes
- List causes of supply and demand in microeconomics
- Explain how government intervention can control supply
- Relate how market forces can manipulate supply and demand
- Identify shortages and surpluses in microeconomics
- Define price ceilings and price floors
- Compare derived and inelastic demand
- Discuss cross price elasticity, income elasticity and price elasticity of demand
1. Understanding the Demand Curve in Microeconomics
Learn what the demand curve in microeconomics is. Find out the common components of the demand curve and how they are created. See what causes a movement along a demand curve and what causes a shift of the entire curve.
2. The Supply Curve in Microeconomics
Learn about the supply curve and its unique characteristics. Find out some of the common terms used when discussing the supply curve and the difference between a movement along a supply curve and a shift of the entire curve. See some examples of each.
3. Causes of Supply and Demand Changes in Microeconomics
Learn what causes movements along the supply and demand curves. See how market forces work to cause these movements and the important role that price plays in this.
4. Market Equilibrium from a Microeconomics Perspective
Learn about the definition of market equilibrium. Learn how to identify the equilibrium point on a supply and demand graph and discover what causes this point to change in our everyday lives.
5. Identifying Shortages and Surpluses in Microeconomics
Supply shortages and surpluses are inefficient for business, but economics seeks to avoid them. In this lesson, find out how they happen, as well as how businesses work to avoid them.
6. Microeconomic Shifts in Supply and Demand Curves
Learn about the important forces that can cause the demand and supply curve to shift. Discover how this affects equilibrium and the prices you pay for goods and services.
7. Using Market Forces to Manipulate Supply and Demand
While the forces of supply and demand are powerful, they are not immobile. This lesson explains how various market forces can cause the supply and demand curves to shift.
8. Price Ceilings and Price Floors in Microeconomics
Governments can restrict prices from going too low or too high through use of price ceilings. This lesson explains these concepts, as well as problems that can arise from their use.
9. Controlling Supply: Government Intervention & Market Forces
Sometimes, despite the best efforts of the market, a heavy hand is needed to control supply. This lesson looks at how the government and the market can work to do just that.
10. Derived vs. Inelastic Demand in Business Markets
The simple law of demand governs much of the business world, however, there are some exceptions. In this lesson, we take a look at two of them - the idea of derived demand and the idea of inelastic demand.
11. Price Elasticity of Demand in Microeconomics
Discover the definition and formula for price elasticity of demand. See some real-world examples of how it is calculated, and find out what it means for demand of a good to be inelastic or elastic.
12. Cross Price Elasticity of Demand: Definition and Formula
Learn what cross price elasticity of demand means. Find out why business owners and economists like to know cross price elasticity, and discover how to calculate it. See some everyday examples.
13. Income Elasticity of Demand in Microeconomics
The income elasticity of demand is a useful tool that measures what happens to consumer demand for products and services when incomes change. We will work through the formula and interpret what the answers mean.
14. Price Elasticity of Supply in Microeconomics
Price elasticity of supply is similar to elasticity of demand, but there are differences too. Let's explore them by looking at some real-life examples of elastic and inelastic supply.
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Other chapters within the UExcel Introduction to Microeconomics: Study Guide & Test Prep course
- Microeconomics Basics
- Microeconomics & Consumer Behavior
- Producers & Production in Microeconomics
- Business Structures & the Economy
- Accounting & Economics
- Economic Market Structures
- Scarce Economic Resource Markets Basics
- Business Technology & Development
- Microeconomics & The Government
- Studying for UExcel Introduction to Microeconomics
- UExcel Introduction to Microeconomics Flashcards