《管理经济学与商业策略 Managerial Economics & Business Strategy》教学资源（PPT课件讲稿，英文版）Chapter 2 Market Forces：Demand and Supply

Managerial economics Business strategy Chapter 2 Market Forces: Demand and Supply Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Managerial Economics & Business Strategy Chapter 2 Market Forces: Demand and Supply

Overview I Market Demand Curve III Market Equilibrium a The demand function I Price restrictions Determinants of demand Consumer Surplus V. Comparative Statics IL. Market Supply Curve The Supply function Supply shifters Producer Surplus Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Overview III. Market Equilibrium IV. Price Restrictions V. Comparative Statics II. Market Supply Curve  The Supply Function  Supply Shifters  Producer Surplus I. Market Demand Curve  The Demand Function  Determinants of Demand  Consumer Surplus

Market demand curve Shows the amount of a good that will be purchased at alternative prices Law of demand The demand curve is downward sloping Ice D Quantity Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Market Demand Curve • Shows the amount of a good that will be purchased at alternative prices. • Law of Demand  The demand curve is downward sloping. Quantity D Price

Determinants of demand Income Prices of substitutes Prices of complements Advertising Population Consumer expectations Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Determinants of Demand • Income • Prices of substitutes • Prices of complements • Advertising • Population • Consumer expectations

The demand function An equation representing the demand curve Qx=f(Px, Py, m, h,) a Q= quantity demand of good X - Px= price of good X a Py- price of a substitute good Y M=income -H= any other variable affecting demand Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 The Demand Function • An equation representing the demand curve Qx d = f(Px , PY , M, H,)  Qx d = quantity demand of good X.  Px = price of good X.  PY = price of a substitute good Y.  M = income.  H = any other variable affecting demand

Change in Quantity Demanded Price a to B: Increase in guantity demanded A 10 B Quantity Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Change in Quantity Demanded Price Quantity D0 4 7 10 6 A A to B: Increase in quantity demanded B

Change in Demand Price Do to d,: Increase in Demand 6 13 Quantity Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Price Quantity D0 D1 6 7 D0 to D1 : Increase in Demand Change in Demand 13

Consumer Surplus The value consumers get from a good but do not have to pay for Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Consumer Surplus: • The value consumers get from a good but do not have to pay for

I got a great deal! That company offers a lot of bang for the buck! Gateway 2000 provides good value Total value greatly exceeds total amount paid Consumer surplus is large Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 I got a great deal! • That company offers a lot of bang for the buck! • Gateway 2000 provides good value. • Total value greatly exceeds total amount paid. • Consumer surplus is large

I got a lousy deal That car dealer drives a hard bargain! I almost decided not to buy it! They tried to squeeze the very last cent from me! · Total amount paid is close to total value Consumer surplus is low Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999

Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 I got a lousy deal! • That car dealer drives a hard bargain! • I almost decided not to buy it! • They tried to squeeze the very last cent from me! • Total amount paid is close to total value. • Consumer surplus is low