Demand and Supply Analysis

Add to Favourites
Post to:

Description
Explanations for Law of Demand Degree of scarcity of one good relative to another helps determine each good’s relative price Definition of demand includes the “other things constant” assumption Among the “other things” are the prices of other goods Substitution Effect When the price of a good falls, its relative price makes consumers more willing to purchase this good When the price of a good increases, its relative price makes consumers less willing to purchase this good Changes in the relative prices – the price of one good compared to the prices of other goods – causes the substitution effect…you substitute toward the less expensive good.


Type: ppt

Discussion

Dawood Mamedoff

Nice content!
For better understanding of the Law of
Demand and Supply I'd advice the
following article:

http://www.myhowtoos.com/en/how-it-works
/82-how-a-free-market-works

1966 days 22 hours 47 minutes ago

11 Followers

Your Facebook Friends on WizIQ