Saturday, 22 February 2020

Market Supply and Equilibrium

0 comments

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.

No comments:

Post a Comment