Basic of Demand, Supply, and Equilibrium

Law of demand

• A decrease in the price of a good, all other things held constant, will cause an increase in the quantity demanded of the good.
• An increase in the price of a good all other things held constant, will cause a decrease in the quantity demanded of the good.

Changes in demand

• Change in buyer's taste
• Change in buyer's incomes; normal goods, inferior goods
• Change in the number of buyers
• Change in the price of related goods; substitute goods, complementary goods

Law of supply

• A decrease in the price of a good, all other things held constant, will cause a decrease in the quantity supplied of the good.
• An increase in the price of a good, all other things held constant, will cause an increase in the quantity supplied of the good.

Changes in supply

• Change in production technology
• Change in input process
• Change in the number of sellers

Market equilibrium

• Market equilibrium is determined at the intersection of the market demand curve and the market supply curve.
• The equilibrium price causes quantity demanded to be equal to quantity supplied.

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Ditulis damar — Selasa, 24 Agustus 2021 — Add Comment — Ekonomi Manajerial, Manajemen