Demand, Supply & Market Equilibrium
Ailyn Benitez, Damaris Garcia & Rony Castro
Economics is the human understanding because it explains the operation of the markets on which we depend on for nearly everything that we eat, drink, or consume.
Buyer and Sellers from all over the world communicate with one another to buy and sell bonds, stocks, and commodities. Auctioneers bring together potential buyers and sellers of art, livestock, used farm equipment, and sometimes, estate. Some Markets are local while others are highly personal. All markets involve demand, supply, price and quantity.
Demand is a schedule or a curve that shows amounts of product that consumers are willing to purchase at each series of possible prices specified period of time. Demand shows the quantity of the product that will be purchased at various possessions. This reveals the relationship between prices of corn and quantity of corn. It is basically a buyer's plan or intentions on the purchase of a product.
Law of Demand
This is when prices fall the demand quantity rises and as the prices rise the demand falls. That would be called the inverse relationship between price and quantity demanded. This is known as The Law of Demand.
The inverse relationship between price price and quantity demanded for any product can be represented on a simple graph, in which, by convention, they measure quantity demanded on the horizontal axis and price on the vertical axis. When points are plotted and are connected they make a smooth curve, this curve is called the Demand Curve.
Adding the quantities demanded by all consumers at each of the various possible prices, they can go from individual demand to Market Demand.
Changes in Demand
A change in the demand schedule or, graphically, a shift a shift in the demand curve is called a Change in Demand.
A favorable change in consumer tastes for a product means more of it will be demanded at each price.
Number of Buyers
An increase in the number of buyers in a market is likely to increase demand and vice versa.
A rise in income causes a rise in demand and vice versa.
Changes in Quantity Demanded
A change in quantity demanded is a movement from one point to another point from one price quantity combination to another on a fixed demand curve.
Supply is a schedule or curve showing the various amount of a product that producers are willing to be able to make available for sale at each of a series of possible prices during a specific period.