[Joseph_E._Stiglitz,_Carl_E._Walsh]_Economics(Bookos.org) (1)

Sources of Shifts in Demand Curves 57
CASE IN POINT: Gasoline Prices and the Demand for
SUVs 59
Shifts in a Demand Curve Versus Movements along a
Demand Curve 60
FUNDAMENTALS OF DEMAND, SUPPLY, AND
PRICE 1: Demand Declines as Price Rises 61
Supply 61
e-INSIGHT: The Demand for Computers and
Information Technology 62
Market Supply 64
Shifts in Supply Curves 65
Sources of Shifts in Supply Curves 65
Shifts in a Supply Curve Versus Movements along a
Supply Curve 67
FUNDAMENTALS OF DEMAND, SUPPLY, AND
PRICE 2: Supply Increases as Price Rises 67
Law of Supply and Demand 67
Using Demand and Supply Curves 69
Consensus on the Determination of Prices 70
FUNDAMENTALS OF DEMAND, SUPPLY, AND
PRICE 3: The Market Clears at the Equilibrium
Price 71
Price, Value, and Cost 70
INTERNET CONNECTION: The Demand and Supply
in the Oil Market 71
REVIEW AND PRACTICE 72
CHAPTER 4 USING DEMAND AND SUPPLY 77
The Price Elasticity of Demand 77
Price Elasticity and Revenues 79
The Determinants of the Elasticity of Demand 80
The Price Elasticity of Supply 82
INTERNATIONAL PERSPECTIVE: Comparing
Reactions to the Oil Price Shock of 2000 83
Using Demand and Supply Elasticities 85
Shortages and Surpluses 88
Interfering with the Law of Supply and Demand 90
THINKING LIKE AN ECONOMIST: Incentives and
the Window Tax 90
Price Ceilings 91
CASE IN POINT: Rent Control in New York City 93
CONTENTS
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