Applying Supply and Demand

Session Overview
You may not realize it, but every time you purchase something, you are participating in a market for that good. Some people supply it, and some peopleyou!demand it. In this lecture, we will examine how to analyze supply and demand curves and the impact changes in market conditions and government policy can have on market equilibrium. Government intervention can impact gasoline prices. Image courtesy of Aaron Tyo-Dikerson on Flickr. Keywords: Supply and demand; equilibrium; demand shift; supply shift; government interference.

Session Activities
Readings Read the recitation notes, which cover new content that adds to and supplements the material covered in lecture.

Recitation: Supply-Demand Analysis (PDF)

Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:

[R&T] Chapter 3, "Demand and Supply." [R&T] Chapter 4, "Applications of Demand and Supply." Sections 4.1-4.2. [Perloff] Chapter 2, "Supply and Demand." (optional)

Lecture Videos View Full Video

Lecture 2: Applying Supply and Demand (00:49:07) Transcript (PDF)

View by Chapter

Overview of Supply and Demand (00:04:16) Impact of a Demand Shift (00:07:15) Impact of a Supply Shift (00:02:58) Government Interference: The Labor Market (00:08:26) Government Interference: Gasoline Prices (00:04:57) Costs and Benefits of Government Intervention (00:12:39) Government Intervention: Water Shortages (00:08:28)

Resources

Graphs and Figures (PDF)

Further Study
These optional resources are provided for students that wish to explore this topic more fully. Textbook Study Materials See the [Perloff] companion website for an overview of the main topics covered in the chapter, as well as quizzes, applications, and other related resources.

Chapter 2