Chapter
17
Demand,
Supply,
and
Equilibrium
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
17­1
Chapter
Objectives
Individual
and
market
demand
Changes
in
demand
Individual
and
market
supply
Changes
in
supply
Graphing
supply
and
demand
curves
Finding
equilibrium
price
and
quantity
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
17­2
Demand
Defined
Demand
is
the
schedule
of
quantities
of
a
good
or
service
that
people
will
purchase
at
different
prices
The
law
of
demand:
when
the
price
of
a
good
is
lowered,
more
of
it
is
demanded;
When
it
is
raised,
less
is
demanded
Copyright
2002 by The McGraw­Hill Companies, Inc.
All rights reserved.
17­3