Economic Demand and Supply

Topic: Economics--- The demand and supply model

Review question: when the price of chocolate increase would you buy more or less?

Thesis: Today I will introduce the demand and supply model so that we may have more idea about Economics.

Main points: (1) The definition of demand and supply model

(2) The example of demand and supply model

BODY

Transition word and + first main point:

First of all, let’s begin with the definition of demand and supply model to figure out what demand and supply is.

Explanation:

Supply and demand model is designed to explain how prices are determined in the market. Here comes two words “demand” and “supply” need to be explained. Demanded is amount of a good all buyers in a market would choose to buy during a period of time. Supply is number of units of a good all sellers in the market would choose to sell during a period of time. When the price of good rises and everything else remains the same the quantity of the good demanded will fall. When the price of good falls and everything else remains the same the quantity of the good demanded will rises. A change in the price of good causes a movement along the demand curve. On the other hand, when the price of good rises and everything else remains the same the quantity of the good supplied will rise. A change in the price of good causes a movement along the supply curve. When the price of good falls and everything else remains the same the quantity of the good supplied will falls. Besides, the point at which the supply and demand curves intersect is called the equilibrium point of the market.

Question for audience about this point: what factor causes the point move along in demand curve? Price or quantity?

Transition word and + second main point:

Next, let’s look at other example of demand and supply model. A change in any variable that affects demand, except for the good’s price causes the demand curve to shift. On the other hand, a change in any...