Supply and Demand

The EconModel applications on this web site all include a "Model Link" like the one for Supply and Demand.  To download and install the EconModel program, click on activate the model links.

Model LinkSupply and Demand
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Printable PDF Exercises

The Supply and Demand application is both the central model in economics and the demonstration of how EconModel presents economic models.  It includes four topics:

Clicking on a few links shows immediately how EconModel presents a model.

A quick review of some important points for first-time users.

Related Models

The Demand Curve can be derived from the Two Goods - Two Prices Model, which is another EconModel application.  The basis for the Supply Curve is the Perfect Competition Model of a profit-maximizing firm.

Who Pays a Sales Tax?  and The Cobweb Model and Inventory-Based Pricing illustrate how the basic supply and demand framework can be used to analyze specific problems.

A static model of supply and demand.  This exercise concludes with an opportunity to work with a range of supply and demand price elasticities, providing some insight into how the slopes of the curves affect the model's properties.

A simple model with dynamic features illustrates the ways that EconModel is able to present dynamic models.