Demand and Supply, relation between demand and supply

To understand the relationship between supply and demand, there are certain things which need to be inculcated primarily before that.First of all, lets discuss What is demand and supply?Demand and Supply are the most integral and vast concept or you can say the backbone of the economic world or the market.

SUPPLY AND DEMAND

Group 1:

Luong Vu Duy Anh Nguyen Thanh Mai

Vu Thi My Duyen Nguy Thi Thanh Lan

UNIVERSITY OF TRANSPORT AND COMMUNICATIONS

Presentation:

Supply

Relative Demand and Supply

CONTENT

I DEMAND

What is Demand?

Demand is the quantity of a good buyer

wish to purchase at each conceivable price

Quantity Demand?

Consumers buy more of a good when its price decreases and less when its

price increases.

When price goes up…

Demand goes down… When price goes down…Demand goes up…

=> The quantity demand describes how price affects CONSUMERS.

II SUPPLY

What is Supply?

Supply is the quantity of a good sellers

wish to sell at each conceivable price

Quantity Supply?

When price goes up…

Supply goes up… When price goes

down…

Supply goes up…

Tendency of suppliers to offer more of a good at higher price and less

at lower price

=> The quantity demand describes how price affects PRODUCERS.

III Relation between Demand and Supply?

What is the relationship between supply and demand?

•CASE 1: Excess of Supply or when Supply > Demand •CASE 2: Excess of Demand or when Demand >

Supply

•CASE 3: State of Equilibrium

So, the term ‘quantity demand’ and ‘quantity supply’

makes sense only in relation to a particular price

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