Demand by Krugman

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Supply and Demand A competitive market: Many buyers and sellers Same

Supply and Demand
A competitive market:
Many buyers and sellers
Same good

or service
The supply and demand model is a model of how a competitive market works.
Five key elements:
Demand curve
Supply curve
Demand and supply curve shifts
Market equilibrium
Changes in the market equilibrium
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A demand schedule shows how much of a good or service

A demand schedule
shows how much of
a good or service
consumers will want
to

buy at different
prices.

Schedule

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Demand curve

Demand curve

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Global comparison

Global comparison

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Increase in demand

Increase in demand

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Movement along the demand curve

Movement along the demand curve

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Shifts of the Demand Curve

Shifts of the Demand Curve

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What Causes a Demand Curve to Shift?

What Causes a Demand Curve to Shift?