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Supply, Demand & Market Equilibrium - Coggle Diagram
Supply, Demand & Market Equilibrium
Supply
A schedule or curve showing the various amounts of a product that producers are willing and able to make available for sale of a series of possible prices
Law of Supply
Other things egaul, as price rises the
quantity supplied rise and as price falls, quantity supplied falls
Determinants
Resource Prices
Technology
Prices of other goods
Taxes and Subsidies
Producer expectations
Number of Sellers
Changes in Quantity Supplied
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Demand
Demand is a schedule or a curve that shows the various amounts of a product that consumers are willing and able to purchase at possible price during a specific period of time, other thing s equal
Law of Demand
Other things equal as price falls, quantity demanded rises and as price rises, quantity demanded falls
Determinants
Change in Consumer Tastes & Preferences
Number of Buyers
Prices of Related Goods
Change in Income
Consumer expectations
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Market Equilibrium
Equilibrium Price is the price where the intentions of buyers and sellers match. Demand & Supply matches
Goverment Set Prices
Ceiling Prices
Max legal Prices a Seller may charge for a product or service
Shortage of Resources
Floor Prices
Minimum Price Fixed by the Goverment. Society feels that the market system has not provided sufficient income for certain groups of resource suppliers or producers
Surplus of Resoures
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