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Because of permissions issues, some material (e.g., photographs) has been removed from this chapter, though reference to it may occur in the text. The omitted content was intentionally deleted and is not needed to meet the University's requirements for this course. NOT AVAILABLE FOR ELECTRONIC VIEWING 3 Chapter Demand and Supply The early 2000s were tough years for many job seekers, including those with a new Ph.D. in economics looking for jobs as college and university instructors. Many of these individuals were seeking positions at the same time that colleges and universities were cutting back on hiring. Their economics training had prepared the applicants to understand the nature of the problem they faced: The supply of economics instructors had increased at the same time that the demand for economics instructors had declined. As you will learn in this chapter, one outcome could be predicted with certainty: Other things being equal, the wages earned by economics instructors had to fall relative to wages available in other occupations. L E A R N I N G O B J E C T I V E S After reading this chapter, you should be able to: Refer to the end of the chapter for a full listing of the multimedia learning materials available in MyEconLab. 48 1. Explain the law of demand 2. Discuss the difference between money prices and relative prices 3. Distinguish between changes in demand and changes in quantity demanded 4. Explain the law of supply 5. Distinguish between changes in supply and changes in quantity supplied 6. Understand how the interaction of the demand for and supply of a commodity determines the market price of the commodity and the equilibrium quantity of the commodity that is produced and consumed Economics Today: The Macro View, Thirteenth Edition, by Roger LeRoy Miller. Copyright © 2006 by Pearson Education, Inc. , publishing as Pearson Addison Wesley.