Macroeconomics

Brief Principles of

Sixth Edition

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The Market Forces of Supply and Demand

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Premium PowerPoint Slides by Ron Cronovich

2012 UPDATE

This is perhaps the most important chapter in the textbook. It’s worth mentioning to your students that investing extra time to master this chapter will make it easier for them to learn much of the subsequent material in the book.

This is also one of the longest chapters in the textbook, and this PowerPoint file is one of the most graph-intensive. Many students taking economics for the first time have difficulty grasping the graphs, which are critically important in this and all subsequent chapters in the book. So an extra degree of hand-holding might be appropriate.

Accordingly, this PowerPoint has carefully detailed animations that build many of the graphs with great care. For example, we show a demand or supply schedule next to the axes, and highlight each coordinate pair in the table as the corresponding point appears on the graph.

Please be assured that the presentation of graphs is more streamlined in subsequent chapters. In this early chapter, though, we do not want to leave any students behind.

If your students are already very comfortable with scatter-type graphs, you may wish to simplify or turn off the animation on these slides, in order to get through them faster.

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In this chapter, look for the answers to these questions:

What factors affect buyers’ demand for goods?

What factors affect sellers’ supply of goods?

How do supply and demand determine the price of a good and the quantity sold?

How do changes in the factors that affect demand or supply affect the market price and quantity of a good?

How do markets allocate resources?

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