Aug. 11, 2022
MARKET
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a regular gathering of people for the purchase and sale of provisions, livestock, and other
commodities.
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market, a means by which the exchange of goods and services takes place as a result of
buyers and sellers being in contact with one another, either directly or through mediating
agents or institutions.
COMPETITION
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a situation in which someone is trying to win something or be more successful than
someone else
LAW OF SUPPLY
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The law of supply states that the quantity of a good supplied (i.e., the amount owners or
producers offer for sale) rises as the market price rises, and falls as the price falls.
LAW OF DEMAND
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The law of demand is a fundamental principle of economics that states that at a higher price
consumers will demand a lower quantity of a good and vice versa.
LAW OF SUPPLY AND DEMAND
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The law of supply and demand reflects the relationship between demand and supply in that
a change in one causes a change in the other.
What is the law of supply and demand explain?
The law of supply and demand is an economic theory that explains how demand and
supply are connected and how these two concepts strive to find market balance or
equilibrium price. Usually, when there is excess supply in the market and a low demand for
the supplied products, there is a decrease in the price of goods.
What is relationship between supply and demand?
It's a fundamental economic principle that when supply exceeds demand for a good or service,
prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship
between the supply and prices of goods and services when demand is unchanged.
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FACTORS THAT COULD AFFECT LAW OF SUPPLY AND DEMAND
Tastes and Preferences of the Consumers: ...
Incomes of the People: ...
Changes in the Prices of the Related Goods: ...
The Number of Consumers in the Market: ...
Changes in Propensity to Consume: ...
Consumers' Expectations with regard to Future Prices: ...
Income Distribution
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Price Fluctuations. Price fluctuations are a strong factor affecting supply and demand. ...
Income and Credit. Changes in income level and credit availability can affect supply and
demand in a major way. ...
Availability of Alternatives or Competition. ...
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Trends. ...
Commercial Advertising. ...
Seasons.
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Aug. 16, 2022