Lecture Slide for Chapter 4: The Market Forces of Supply and Demand (N. Gregory Mankiw's Principles of Economics Textbook)

Principles of Economics, Ninth
Edition
N. Gregory Mankiw




PowerPoint Slides prepared by:
V. Andreea CHIRITESCU
Eastern Illinois University




N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 1
part.

, Chapter 4

The Market Forces of Supply and Demand




N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 2
part.

, Markets and Competition, Part 1
• Supply and demand
– Words economists use most often
– The forces that make market economies
work
– Refer to the behavior of people as they
interact with one another in competitive
markets



N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in 3
part.

, Markets and Competition, Part 2
• Market
– A group of buyers and sellers of a
particular good or service
– Buyers as a group
• Determine the demand for the product
– Sellers as a group
• Determine the supply of the product




N. Gregory Mankiw, Principles of Economics, 9th Edition © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in
part. 4