Supply and Demand
- Created by: lorraineechalkley
- Created on: 21-11-12 15:08
Supply and Demand
à Supply and demand are the two words that economists use most often.
à Supply and demand are the forces that make market economies work.
à Modern microeconomics is about supply, demand, and market equilibrium.
MARKETS AND COMPETITION
à A market is a group of buyers and sellers of a particular good or service.
à The terms supply and demand refer to the behavior of people . . . as they interact with one another in markets.
SUPPLY AND DEMAND TOGETHER
à Equilibrium refers to a situation in which the price has reached the level where quantity supplied equals quantity demanded.
SUPPLY AND DEMAND TOGETHER
Equilibrium Price
à The price that balances quantity supplied and quantity demanded.
à On a graph, it is the price at which the supply and demand curves intersect.
Equilibrium Quantity
à The quantity supplied and the quantity demanded at the equilibrium price.
à On a graph it is the quantity at which the supply and…
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