Sunday, 3 November 2019

Unit 3: Market Supply and Equilibrium

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                                      Unit 3: Market Supply and Equilibrium  



Supply is the specific quantity of output that the producers are willing and able to make available to consumers at a particular price over a given period of time.

According to the Law of Supply, more of a good will be supplied the higher its price, other things constant or less of a good will be supplied the lower its price, other things remaining constant.

Price is determined by the two forces of demand and supply, in a free market.

A point of balance, where demand equals supply is known as market equilibrium.

Equilibrium: A state of balance.

Law of Supply: More of a good will be supplied the higher its price and vice-versa  Supply: Willingness and ability to produce a specific quantity of output available to consumers at a particular price over a given period of time.









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