Learning Objectives

After reading this chapter, you should be able to

4.1 Describe and explain why buyers and sellers participate in markets.

4.2 Define and explain the law of demand.

4.3 Discuss shifts in market demand.

4.4 Define and explain the law of supply.

4.5 Discuss shifts in market supply.

4.6 Explain how the market equilibrium price and quantity are determined.