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.
UNIVERSITY OF TRANSPORT AND COMMUNICATIONS Presentation: SUPPLY AND DEMAND Group 1: Luong Vu Duy Anh Nguyen Thanh Mai Vu Thi My Duyen Nguy Thi Thanh Lan CONTENT Demand Supply Relative Demand and Supply 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 Demand goes down… When price goes down…Demand goes up… 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? Tendency of suppliers to offer more of a good at higher price and less at lower price When price goes up… Supply goes up… When price goes Supply goes up… down… => 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 THANKS FOR WATCHING 13 ... 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 ...CONTENT Demand Supply Relative Demand and Supply I DEMAND What is Demand? Demand is the quantity of a good buyer wish to purchase at each conceivable price Quantity Demand? Consumers... up… Supply goes up… When price goes Supply goes up… down… => The quantity demand describes how price affects PRODUCERS III Relation between Demand and Supply? What is the relationship between supply