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

Ask an Expert

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

Write your message here..

Related Questions

?market demand curves, Market Demand Market Demand Curves - A curve ... Market Demand Market Demand Curves - A curve which relates the quantity of a good that all the consumers in a market buy to price of that good. Determining Market Demand

Per unit tax and surplus, How does a How does a

Ppf, negative slope on ppf represents what? negative slope on ppf represents what?

Policies for technological advance, Policies for Technological Advance ... Policies for Technological Advance Without better technology, increases in capital stock generated by investment rapidly run into diminishing returns. And without improvements

Optical activity, can achiral molecules refract light? can achiral molecules refract light?

Calculate revenue, Question 1  (9 marks) During the 1990s, technologi... Question 1  (9 marks) During the 1990s, technological advance reduced the cost of computer chips.  Explain, with the use of supply and demand diagrams, how the following mark

What factors shift the aggregate demand curve to right, What factors shift ... What factors shift the Aggregate demand curve to right and what factors shift the AD curve to left?  AD shifts to the right when any component of AD enhances autonomously; e.g

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

Microeconomics, INFO: Suppose that a firm is currently employing 20 workers... INFO: Suppose that a firm is currently employing 20 workers,(the only variable input), at a wage rate of $60. The average product of labor is $30, the last worker added 12 units to

What do you meant by relative poverty, Q. What do you meant by Relative Pov... Q. What do you meant by Relative Poverty? Relative Poverty: A measure of poverty based on an individual or family's relative income compared to overall average level of income