The purpose of this chapter is to d

The purpose of this chapter is to develop one of the most powerful methods of
analysis in the economist's tool kit. In this chapter we will develop the model of a simple
market – supply and demand (the industry in pure competition – discussed further in
Chapter 8). The demand schedule and supply schedule will be developed and put
together to form the analysis of a market. The market presented here is the starting
point for the analysis of all market structures.