6. 6
The law of demand holds that other things equal,
as the price of a good or service rises, its quantity
demanded falls.
– The reverse is also true: as the price of a good or
service falls, its quantity demanded increases.
7. 7
Income Remain Constant
Price of related good should
not change
No changes in future expectation
8. 8
Number of Bottles
per Month
Price per
Bottle
A
When the price is $4.00
per bottle, 40,000 bottles
are demanded (point A).
B
At $2.00 per bottle,
60,000 bottles are
demanded (point B).
40,000 60,000
$4.00
2.00
9. 9
Change In Taste And Fashion.
Changes In Income.
Changes In Weather.
Changes In Population.
10. 10
Supply is the quantity of output
brought for sale in the market at a
certain price
Definition:
11. 11
If nothing else changes, firms are
willing to supply a greater quantity of
good or service at higher prices than
lower.
12. 12
Constant cost of production
Constant price of capital goods
Constant technology
13. 13
Number of Bottles
per Month
Price per
Bottle When the price is $2.00
per bottle, 40,000 bottles
are supplied (point F).
At $4.00 per bottle,
quantity supplied is
60,000 bottles (point G).
40,000 60,000
$4.00
2.00
14. 14
Change In Production Cost.
Change In Agriculture Output.
Development And Order Situation In The Country.
Law And Order Situation In The Country.
15. To optimize equilibrium point it a
corroboration is necessary between demand
and supply.
Demanding the supply or supplying the
demand is the key of growth in the market
economy.
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