Home work help, Microeconomics

Exercise on Demand, supply and market equilibrium

Given the following determinants of demand and supply, briefly explain, using appropriate diagram, the nature of relationships between changes in individual determinants and corresponding changes in demand or supply of a particular product.


Determinants of demand:

D = F ( Po| Y, Pr,T, E,Nb)

Where,

D = Demand for a particular product
Po = Price of the respective product ( own price)
Y = income earned by a consumer
Pr = price of related goods substitute or compliment
T = tastes and preferences of consumers
E = expectation about future changes in price, income or wealth, etc
Nb = number of buyers

Determinants of supply:

S= F( Po| Pi, Pr,T,E,Ns)

Where,
S = supply of a particular product
Po = price of the respective product (own price)
Pi = price of inputs required to make production
P r= price of related good substitute or complement
T = technology used in production
E = Expectations about future changes in the price of the product
Ns = number of sellers in the market
Posted Date: 3/11/2013 1:52:34 PM | Location : United States







Related Discussions:- Home work help, Assignment Help, Ask Question on Home work help, Get Answer, Expert's Help, Home work help Discussions

Write discussion on Home work help
Your posts are moderated
Related Questions
Determinants of Private Demand - Waiting-Time for Employment ‘Waiting time’ for employment is another important factor. The waiting time varies from course to course. For inst

Statistical methods are considered to be superior techniques of demand estimation because: a. The element of subjectivity in this method is minimum, b. Methods of es


Equation (1) gives a hypothetical demand curve for hybrid vehicles in the United States during the year 2000, where Q is the quantity demanded and P is the price. Equation (2) giv

#1 explain with the aid of diagram the effect of an increase in demand for palm oil on the equilibrum position for palm kernel

Following the tremendous success of the 'Matthew Hayden Cookbook', we are once more welcomed into the home-and, more importantly, the kitchen!- of Australia's gourmet cricketer for

Q. What do you meant by Deficit? Deficit: When a business, government or household spends more in a given period of time than they generate in income, they suffer a deficit. A

write name and symbol of element from s-block that has zero oxidation state?

Explain the meaning of the statment "coffee and tea are close substitutes".

What is the difference between wages and salaries