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Supply, Demand and Market Equilibrium, Change in the price of the good @…
Supply, Demand and Market Equilibrium
Demand
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Theory of demand
Demand is defined as the amount of goods consumers are able & willing to buy in a given period of time at a given price, ceteris paribus
The quantity demanded of a product is inversely related to its price, ceteris paribus
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Supply
The law of supply
The law of supply states that in a given period of time, the quantity supplied of a product is directly related to its price, ceteris paribus
The higher the price of a good or a service, the more producers are willing and able to sell the goods & services
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Theory of supply
Supply of a good refers to the amount of a good producers are willing & able to sell in a given period of time at a given price, ceteris paribus
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