Demand and supply analysis is a microeconomic concept that refers to the study of the relationship between buyers and sellers, and the price and quantity exchanged.
What factors affect market demand?
Market demand is affected by factors such as price, consumer income, consumer preferences, prices of related goods and services, and population size.
What factors affect market supply?
Market supply is affected by factors such as price, cost of production, technology, prices of related goods and services, and government policies.
What is the law of demand?
The law of demand states that there is an inverse relationship between price and quantity demanded, meaning that as price increases, quantity demanded decreases, and vice versa.
What is the law of supply?
The law of supply states that there is a direct relationship between price and quantity supplied, meaning that as price increases, quantity supplied increases, and vice versa.
What is market equilibrium?
Market equilibrium is the point at which the quantity demanded and quantity supplied of a good or service are equal, and there is no surplus or shortage in the market.
What happens when there is a surplus in the market?
When there is a surplus in the market, the quantity supplied of a good or service is greater than the quantity demanded, leading to a decrease in price.
What happens when there is a shortage in the market?
When there is a shortage in the market, the quantity demanded of a good or service is greater than the quantity supplied, leading to an increase in price.
What is elasticity of demand?
Elasticity of demand is a measure of how responsive consumers are to changes in price, and is calculated as the percentage change in quantity demanded divided by the percentage change in price.
What is price elasticity of supply?
Price elasticity of supply is a measure of how responsive producers are to changes in price, and is calculated as the percentage change in quantity supplied divided by the percentage change in price.
What is a price floor?
A price floor is a government-imposed minimum price below which a good or service cannot legally be sold.
What is a price ceiling?
A price ceiling is a government-imposed maximum price above which a good or service cannot legally be sold.
What is deadweight loss?
Deadweight loss is the loss of economic efficiency that occurs when the equilibrium for a good or service is not reached, and there is either a surplus or shortage in the market.
What is the difference between a change in demand and a change in quantity demanded?
A change in demand refers to a shift in the entire demand curve due to a change in one or more of the factors that affect demand, while a change in quantity demanded refers to a movement along the demand curve due to a change in price.
What is the difference between a change in supply and a change in quantity supplied?
A change in supply refers to a shift in the entire supply curve due to a change in one or more of the factors that affect supply, while a change in quantity supplied refers to a movement along the supply curve due to a change in price.
What is demand and supply analysis?
Demand and supply analysis is a microeconomic concept that refers to the study of the relationship between buyers and sellers, and the price and quantity exchanged.
What factors affect market demand?
Market demand is affected by factors such as price, consumer income, consumer preferences, prices of related goods and services, and population size.
What factors affect market supply?
Market supply is affected by factors such as price, cost of production, technology, prices of related goods and services, and government policies.
What is the law of demand?
The law of demand states that there is an inverse relationship between price and quantity demanded, meaning that as price increases, quantity demanded decreases, and vice versa.
What is the law of supply?
The law of supply states that there is a direct relationship between price and quantity supplied, meaning that as price increases, quantity supplied increases, and vice versa.
What is market equilibrium?
Market equilibrium is the point at which the quantity demanded and quantity supplied of a good or service are equal, and there is no surplus or shortage in the market.
What happens when there is a surplus in the market?
When there is a surplus in the market, the quantity supplied of a good or service is greater than the quantity demanded, leading to a decrease in price.
What happens when there is a shortage in the market?
When there is a shortage in the market, the quantity demanded of a good or service is greater than the quantity supplied, leading to an increase in price.
What is elasticity of demand?
Elasticity of demand is a measure of how responsive consumers are to changes in price, and is calculated as the percentage change in quantity demanded divided by the percentage change in price.
What is price elasticity of supply?
Price elasticity of supply is a measure of how responsive producers are to changes in price, and is calculated as the percentage change in quantity supplied divided by the percentage change in price.
What is a price floor?
A price floor is a government-imposed minimum price below which a good or service cannot legally be sold.
What is a price ceiling?
A price ceiling is a government-imposed maximum price above which a good or service cannot legally be sold.
What is deadweight loss?
Deadweight loss is the loss of economic efficiency that occurs when the equilibrium for a good or service is not reached, and there is either a surplus or shortage in the market.
What is the difference between a change in demand and a change in quantity demanded?
A change in demand refers to a shift in the entire demand curve due to a change in one or more of the factors that affect demand, while a change in quantity demanded refers to a movement along the demand curve due to a change in price.
What is the difference between a change in supply and a change in quantity supplied?
A change in supply refers to a shift in the entire supply curve due to a change in one or more of the factors that affect supply, while a change in quantity supplied refers to a movement along the supply curve due to a change in price.