Figure 2-1: Pork market equilibrium

S
p, $ per kg

Q, Million kg of pork per year

 Figure 2-2: Impact of a demand shift

S
p, $ per kg

e2
$3.50
e1
$3.00

D2
D1
0 220 228 232

Excess demand = 12
Q, Million kg of pork per year
 Figure 2-3: Impact of a supply shift

S2
S1

e2
p, $ per kg

$3.55 e
$3.00 1

D
0 205 215 220

Excess demand = 15
Q, Million kg of pork per year
 Figure 2-4: Labor market equilibrium

S
w, Wages per hour

e
W*

D
0 L*
L, Hours worked per year
 Figure 2-5: Labor market with
minimum wage

Minimum wage, price floor

W
w, Wages per hour

e
W*

D
0 Ld L* Ls

Unemployment
L, hours worked per year
 Figure 2-6: Gasoline price cap

S2
p, $ per gallon

e2 S1
p2

e
p1 = p 1

D
0 Qs Q2 Q1 = Qd
Excess demand
Q, Gallons of gasoline per month
MIT OpenCourseWare
http://ocw.mit.edu

14.01SC Principles of Microeconomics

Fall 2011

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