4 Demand and Supply

Photo shows two men plucking coffee seeds from a plant.

Why did the price of coffee rise in 2014?

Chapter Checklist

When you have completed your study of this chapter, you will be able to

  1. 1 Distinguish between quantity demanded and demand, and explain what determines demand.

  2. 2 Distinguish between quantity supplied and supply, and explain what determines supply.

  3. 3 Explain how demand and supply determine price and quantity in a market, and explain the effects of changes in demand and supply.

MyEconLab Big Picture Video

Competitive Markets

When you want a latte you go to a coffee shop. When a coffee shop needs to restock with beans and milk, it calls its suppliers of those ...

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