Summary
Summary Price formation essay
- Course
- Economics
- Institution
- 10th Grade
This is a price formation essay which can be assessed.
[Show more]
Seller
Follow
Content preview
Discuss in detail, using diagrams, how the forces of demand and supplydetermine the equilibrium price in the product market.
Product markets are composed of the businesses attempting to sell goods and services and
the households / consumers who might buy them. The prices and quantities are based on
the interaction that occurs between them.
A demand for a product is the result of decisions made by consumers about which
needs and wants to satisfy
LAW OF DEMAND
• A demand curve indicates the quantity of a product that is demanded at different prices
• It slopes down from left to right. This indicates that the demand curve has a negative
slope.
• It is the result of the inverse relationship between the price of a product and the quantity
demanded of the product
SUPPLY
Supply is the quantity of a product that individual producers plan to sell at a certain price.
Law of Supply
• The law of supply states that as the price of the product increases, the quantity supplied of
the product increases
• There is a direct relationship between the quantity and price.
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller meganvdberg86. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now