SS&FA/C - Equilibrium in the very short period - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI

EQUILIBRIUM IN THE
VERY SHORT PERIOD
(OR) MARKET PERIOD
ENGINEERING ECONOMICS &
FINANCIAL ACCOUNTING
CS FINAL YEAR & IT THIRD YEAR

Dr.K.Baranidharan
Present by…
331-07-2013

Engineering Economics
& Financial Accounting
MANAGERIAL
ECONOMICS
431-07-2013

EQUILIBRIUM IN THE VERY SHORT
PERIOD (OR) MARKET PERIOD

• OP as the original market
price, OQ the equilibrium
quantity demanded and
SS as the supply curve of
mangoes.
• The supply curve of
mangoes for example is
fixed in the market
period and the supply
cannot be increased.
• When the demand for
mangoes
increase, demand curve
DD shifts to D1D1.

• The price of the mangoes
goes up from OP to OP1
because the supply is
fixes.
• The supply in the market
continues to be SS
though the demand has
increased.
• Because the supply is
fixed in the market
period, the price rise
when the demand
increases.

• When the demand
decreases, the demand
curve shifts to the left.
• Demand curve DD
shifts to the left and its
D2D2 is the new
demand as a
result, the price falls.
• Thus, demand decides
the price in the market
period as the supply is
fixes and cannot be
altered.

Dr.K.Baranidharan
Thank you
K YOU
931-07-2013

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SS&FA/C - Equilibrium in the very short period - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

2. EQUILIBRIUM IN THE VERY SHORT PERIOD (OR) MARKET PERIOD ENGINEERING ECONOMICS & FINANCIAL ACCOUNTING CS FINAL YEAR & IT THIRD YEAR

3. Dr.K.Baranidharan Present by… 331-07-2013

4. Engineering Economics & Financial Accounting MANAGERIAL ECONOMICS 431-07-2013

5. EQUILIBRIUM IN THE VERY SHORT PERIOD (OR) MARKET PERIOD

6. • OP as the original market price, OQ the equilibrium quantity demanded and SS as the supply curve of mangoes. • The supply curve of mangoes for example is fixed in the market period and the supply cannot be increased. • When the demand for mangoes increase, demand curve DD shifts to D1D1.

7. • The price of the mangoes goes up from OP to OP1 because the supply is fixes. • The supply in the market continues to be SS though the demand has increased. • Because the supply is fixed in the market period, the price rise when the demand increases.

8. • When the demand decreases, the demand curve shifts to the left. • Demand curve DD shifts to the left and its D2D2 is the new demand as a result, the price falls. • Thus, demand decides the price in the market period as the supply is fixes and cannot be altered.

9. Dr.K.Baranidharan Thank you K YOU 931-07-2013

10. 1031-07-2013

SS&FA/C - Equilibrium in the very short period - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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