What we know about Price & Supply?
Price: A place where two agents (buyer and seller) interact is called MARKET.But the term of interaction is known as PRICE.
In Modern economics, Prices are generally expressed in units of some form of currency.
Price is the main factor which drives buyers and sellers.
The Quantity Supplied of any good or Service is the willingness and ability of the producers of the goods and services to offer in the market for sale at various prices. There is a DIRECT relationship between Price and Quantity Supplied. This can be explained through Law of Supply, i.e, Other things equal, when the price of a good rises, the quantity supplied of a good also rises, and when price falls, the quantity supplied falls as well. For Example, When the price of a chocolate was $20, the quantity supplied was 45 units. But when the price was increased to $30, the quantity supplied increased to 65 units by the producers, So that they can generate more revenue and vice verse. Through this we can say there is direct relationship between price and quantity supplied.
Price is the main factor which drives buyers and sellers.
Supply: SUPPLY is the willingness and ability of the Producers to offer the goods or services in the market for sale at various prices.
Holding all other factors constant, an increase in the price of a good and service will decrease demand and vice verse.
Relation between Price & Supply
The Quantity Supplied of any good or Service is the willingness and ability of the producers of the goods and services to offer in the market for sale at various prices. There is a DIRECT relationship between Price and Quantity Supplied. This can be explained through Law of Supply, i.e, Other things equal, when the price of a good rises, the quantity supplied of a good also rises, and when price falls, the quantity supplied falls as well. For Example, When the price of a chocolate was $20, the quantity supplied was 45 units. But when the price was increased to $30, the quantity supplied increased to 65 units by the producers, So that they can generate more revenue and vice verse. Through this we can say there is direct relationship between price and quantity supplied.
No comments:
Post a Comment