Market Equilibrium, Demand and Supply Model

(1) Explain the laws of demand and supply, and identify fac- tors that cause shift in demand and supply.

(2) Define and calculate consumer surplus and producer surplus.

(3) Explain price determination in a competitivemarket, and show how equilibrium changes in response to changes in determinants of demand and supply.

(4) Explain and illustrate how excise taxes, ad valorem taxes, price floors, and price ceilings impact the functioning of a market.

(5) Apply supply and demand analysis as a qualitative fore- casting tool to see the big picture in competitive mar- kets.

Describes the relationship between the total quantity and price per unit of a good all consumers are willing and able to purchase, holding other variables constant.