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 Link:  Supply and Demand
<activate the model links>
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:

• A Quick Demonstration

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

• Basic Instructions

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 Simple Example

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 Dynamic Model

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

Classic Economic Models

    Contents

Microeconomics

Introduction
    Overview of Micro Models

Supply and Demand
    Basic Supply and Demand
    Who Pays a Sales Tax?
    The Cobweb Model and
        Inventory-Based Pricing

Theory of the Firm
    Perfect Competition
    Monopoly and
        Monopolistic Competition
    Price Discrimination
    The Demand for Labor

Theory of the Consumer
    Two Goods - Two Prices
    Intertemporal Substitution
    Labor Supply, Income Taxes,
        and Transfer Payments

Macroeconomics

Introduction
    Overview of Macro Models

Models in Chronological Order
    The Classical Model
    The Simple Keynesian Model
    The Keynesian IS/LM Model
    The Mundell-Fleming Model
    Real Business Cycles
    The IS/MP Model
    The Solow Growth Model

Financial Markets
    Utility-Based Valuation of Risk
    Mean-Variance Analysis:
        Risk vs. Expected Return
    Fixed Income Securities:
        Mortgage/Bond Calculator
    Growth Investments:
        Present Value Calculator

Resources