"Interaction of supply and demand"(Theme 1: A level Business Edexcel)
5 views 0 purchase
Course
Unit 1 - Marketing and people
Institution
PEARSON (PEARSON)
In this lecture notes you will find in depth notes for the topic "Interaction of supply and demand" Theme 1 of Edexcel A level business which is called marketing and people.The textbook "Edexcel AS/A level BUSINESS, 5th edition, Pearson" is referenced in these lecture notes. They are really well wr...
- EQUILIBRIUM means a state of equality or balance
between demand & supply.(no excess
demand and
supply). No tendency for price or quantity to change
- DISEQUILIBRIUM means where supply and
demand are out of balance (/are not equal)
- The interaction of buyers and sellers will provide
EQUILIBRIUM PRICE (known also as MCP)
in a
market where demand and supply are equal.
When there is a disequilibrium two cases occur:
.Surplus (Excess supply)
- Where supply exceeds demand, then there is a surplus due to
a high price
- A business raises its price, as a result demand drop
- The goods would remain unsold
.Shortage (excess demand)
- Demand exceeds supply because of the low prices
- Shortage of goods in the market
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller annacarcelli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.45. You're not tied to anything after your purchase.
