Study Material of Economics - Q - What is demand and law of demand?

Question - What is demand and law of demand?

Answer -  

Question- What are the factors which affect demand and supply curve ?

Question- What are the factors which affect demand and supply curve ?

Answer - An increase in consumer income, a change in consumer preferences, or the introduction of a new substitute can shift the demand curve. Similarly, changes in production costs, technological advancements, or government regulations can shift the supply curve.

Q & Ans - what is equilibrium price ?

 

Q - what is equilibrium price ?

Answer - Equilibrium: The equilibrium occurs at the point where the quantity demanded equals the quantity supplied, resulting in a stable market price. This price is known as the equilibrium price or market-clearing price. At the equilibrium price, there is neither a shortage (excess demand) nor a surplus (excess supply) in the market.

Study Material of Economics - Q & Ans - What is supply and law of supply?

 

Question -  What is supply and law of supply?

Answer -Supply: Supply represents the quantity of a good or service that producers are willing and able to provide at different price levels during a specific time period. Similar to demand, supply is influenced by various factors, such as production costs, technology, input prices, government policies, and future expectations. The law of supply states that, as the price of a product increases, the quantity supplied also increases, and vice versa. This positive relationship between price and quantity supplied is depicted by the upward-sloping supply curve.