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
is it just assumed that a monopoly graph is showing economic profit instead of accounting profit

Gay Lussac''s law of gaseous volumes: While gases react with each other they always do so in volumes that bears a simple ratio to one and another or to the volumes of the products

What is the Adam smith view of "invisible Hand"?  Invisible hand is an unknown power which is working for the interest of total economy. In any economy, everybody cares for his

What is endothermic reaction? 3. Draw a generalised energy graph for an endothermic reaction.

what are the sources of oligopoly power

compare marginal rate of technical substitution and marginal rate of substitution

Neoliberalism So much thinking about the proper role of government in economic growth over the past 2 decades has tends to conclusions which are today known as neo-liberal. The

ADMINISTRATIVE REFORMS - ECONOMIC POLICY: During the last few decades, phenomenal changes are taking place at a fast rate in the field of science and technology as well as in


3.Cost Minimization for Cobb-Douglas. Suppose the Acme Gumball Company has the produc- tion function of q=LK. Given that the MPL=K, MPK=L and MRT S=MPL/MPK. Part a-b, we are anal