ABSTRACT
260Markets bring buyers and sellers together to exchange goods and services. Markets provide efficient, self-correcting institutions that provide goods that producers want to sell and consumers want to buy. In this chapter, market equilibrium and mathematical models of supply and demand are introduced and explained. An analytical tool called comparative statics leads to the analysis and understanding of changes in supply and demand. The models explained here provide timely, important, and interesting explanations of real-world events. Quantitative models of markets are described and explained.
