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Introduction to Economics I Lecture 3

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Introduction to Economics I

Lecture 3

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Lecture 3

Market

Market, a means by which the exchange of goods and services takes place as a result of buyers and sellers being in contact with one

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Lecture 3

Supply and demand

Supply and demand, in economics, is the relationship between the quantity of a commodity that producers wish to sell and the quantity of a commodity that consumers wish to buy at various prices .

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Lecture 3

Market Equilibrium

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Lecture 3

The law of demand

The law of demand says that at higher prices, buyers will demand less of an economic good.

The law of supply says that at higher prices, sellers will supply more of an economic good.

• These two laws interact to determine the actual market prices and volume of goods that are traded on a market.

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Lecture 3

The law of supply

The law of supply says that at higher prices, sellers will supply more of an economic good.

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Lecture 3

The law of demand & The law of supply

These two laws interact to determine the actual market prices and volume of goods that are traded on a market.

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Lecture 3

An Example

where Qd and Qs is quantity demanded and quantity supplied, respectively. P denotes the price level.

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Lecture 3

Solution Qd=100-4P Qs=6P In equilibrium Qd=Qs. 100-4P=6P 100=10P

P=10 is the equilibrium price level.

Referanslar

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