Supply & demand

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Supply & demand

  1. 1. 1
  2. 2. 3  DEMAND Definition The Law Of Demand Assumption Demand Curve Determinants Of Demand
  3. 3. 4  SUPPLY Definition Law Of Supply Assumptions Supply Curve Determinants Of Supply  Conclusion
  4. 4. 5 Definition:
  5. 5. 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.
  6. 6. 7  Income Remain Constant  Price of related good should not change  No changes in future expectation
  7. 7. 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
  8. 8. 9  Change In Taste And Fashion.  Changes In Income.  Changes In Weather.  Changes In Population.
  9. 9. 10 Supply is the quantity of output brought for sale in the market at a certain price Definition:
  10. 10. 11  If nothing else changes, firms are willing to supply a greater quantity of good or service at higher prices than lower.
  11. 11. 12  Constant cost of production  Constant price of capital goods  Constant technology
  12. 12. 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
  13. 13. 14  Change In Production Cost.  Change In Agriculture Output.  Development And Order Situation In The Country.  Law And Order Situation In The Country.
  14. 14. 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. 15
  15. 15. 16

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