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The interaction between
demand and supply
by: pascual roku
An overview of how supply and demand interact in the
market.
>Economic development is a key factor in market for energy resources .As the economic grows there is
a growing consumption of energy sources with the economic decline the consumption and thus
demand decreases.
WHAT EFFECT WOULD A SHIFT IN DEMAND AND SUPPLY HAVE ON THE EQUILIBRIUM
PRICE OF THE GOOD?
CHANGE IN DEMAND OR
SUPPLY
HOW DOES THE
EQUILIBRIUM PRICE
CHANGE
HOW DOES THE
EQUILIBRIUM QUANTITY
CHANGE
INCREASE IN DEMAND UP UP
DECREASE IN DEMAND DOWN DOWN
INCREASE IN SUPPLY DOWN UP
DECREASE IN SUPPLY UP DOWN
IS THE MARKET FOR COAL IN
PERFECT COMPETITION?
> The are many buyers and sellers
>their perfect information about the product
>the firms a prices takers
> freedom to enter and leave the industry
how fluctuation may affect the global
economy?
> INFLATION. will increase because the supply of coal will be limited due to fluctuation
>TAX REVENUE . will increase as well because governments will use this opportunity to increase the
state revenue and they can also subsidies the price for coal.
>EMIGRATION. employment could go down due to fluctuation and this in turn will force people to
immigrate to other countries in search for better working conditions.
BLACK ECONOMIC. because is the part of a country economic activity which is unrecoded.

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Untitled presentation

  • 1. The interaction between demand and supply by: pascual roku
  • 2. An overview of how supply and demand interact in the market. >Economic development is a key factor in market for energy resources .As the economic grows there is a growing consumption of energy sources with the economic decline the consumption and thus demand decreases.
  • 3. WHAT EFFECT WOULD A SHIFT IN DEMAND AND SUPPLY HAVE ON THE EQUILIBRIUM PRICE OF THE GOOD? CHANGE IN DEMAND OR SUPPLY HOW DOES THE EQUILIBRIUM PRICE CHANGE HOW DOES THE EQUILIBRIUM QUANTITY CHANGE INCREASE IN DEMAND UP UP DECREASE IN DEMAND DOWN DOWN INCREASE IN SUPPLY DOWN UP DECREASE IN SUPPLY UP DOWN
  • 4. IS THE MARKET FOR COAL IN PERFECT COMPETITION? > The are many buyers and sellers >their perfect information about the product >the firms a prices takers > freedom to enter and leave the industry
  • 5. how fluctuation may affect the global economy? > INFLATION. will increase because the supply of coal will be limited due to fluctuation >TAX REVENUE . will increase as well because governments will use this opportunity to increase the state revenue and they can also subsidies the price for coal. >EMIGRATION. employment could go down due to fluctuation and this in turn will force people to immigrate to other countries in search for better working conditions. BLACK ECONOMIC. because is the part of a country economic activity which is unrecoded.