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Understanding Economic Systems - Supply and Demand

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BF10 - Principals of Business and Finance

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Understanding Economic Systems - Supply and Demand

  1. 1. UNDERSTANDING Economic S y s t e m s https://flic.kr/p/8VgRyM
  2. 2. https://flic.kr/p/7iXUqB Supply& Part5: Demand
  3. 3. https://flic.kr/p/4QAFrr The market economy is based on the principles of supply and demand.
  4. 4. https://flic.kr/p/mUGBwy DemandThe quantity of goods or services that consumers are willing and able to buy.
  5. 5. https://flic.kr/p/oBTUVy SupplyThe quantity of goods or services that businesses are willing and able to provide.
  6. 6. SupplyGraph Quantity Price The Supply Curve on a graph is ascending. https://flic.kr/p/pTUmqq
  7. 7. LawofSupply As the price of a good decreases, the supply of that good will decrease. https://flic.kr/p/pTUmqq
  8. 8. DemandGraph The Demand Curve on a graph is descending. https://flic.kr/p/pTUmqq Quantity Price
  9. 9. LawofDemand As the price of a good decreases, the demand of that good will increase. https://flic.kr/p/pTUmqq
  10. 10. Equilibrium Where the two curves meet, is the equilibrium point. https://flic.kr/p/pTUmqq Quantity Price
  11. 11. Surplus When there is more supply, than quantity demanded, a surplus is created. https://flic.kr/p/pTUmqq Quantity Price
  12. 12. Shortage When there is less supply, than quantity demanded, a shortage is created. https://flic.kr/p/pTUmqq Quantity Price

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