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This document discusses how supply and demand interact in markets for energy resources. It explains that economic growth leads to increased consumption of energy, while economic declines decrease consumption and demand. It then provides a table showing how changes in demand or supply affect equilibrium price and quantity. Specifically, it notes that an increase in demand or decrease in supply raises price and quantity, while a decrease in demand or increase in supply lowers price and raises quantity. The document also examines whether the market for coal is perfectly competitive and how fluctuations in coal supply could impact inflation, tax revenue, employment, and black market economic activity.
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This document discusses inflation, deflation, and the Phillips curve. It defines inflation as a rise in prices and fall in the value of money caused by an increase in demand or decrease in supply. There are two types of inflation - demand-pull inflation caused by higher consumer demand, and cost-push inflation caused by increased costs of wages, raw materials, or money supply. The impacts of inflation are that it erodes purchasing power for consumers and benefits farmers and businessmen in the short-run but hurts them in the long-run. Deflation is when prices fall significantly over time, making money more valuable. The Phillips curve shows an inverse relationship between unemployment and nominal wage inflation, such that lower unemployment is associated with higher wages and
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- 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.