On the "Law of Demand."

Demand, Supply and the Market ______________________________________ Learning Outcomes Upon completion of this chapter, you will be able to: 1. Explain the law of demand: how the price of a good affects the quantity demanded 2. Identify what other factors affect demand (the non-price determinants of demand) 3. Explain the law of supply: how the price of a good affects the quantity supplied 4. Identify other factors that affect supply (the non-price determinants of supply) 5. Show how to derive the demand and supply curves from demand and supply tables 6. Demonstrate how supply and demand interact to determine equilibrium price and quantity of goods 7. Explain situations of market disequilibria and show how the market reaches new equilibrium 8. Show how Government interventions in the market (such as price supports or price ceilings) affect the operations of markets.