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Demand Curves
In economics, a demand curve is a graph depicting the relationship between the price of a certain commodity (the ''y''-axis) and the quantity of that commodity that is demanded at that price (the ''x''-axis). Demand curves can be used either for the price-quantity relationship for an individual consumer (an individual demand curve), or for all consumers in a particular market (a market demand curve). It is generally assumed that demand curves slope down, as shown in the adjacent image. This is because of the law of demand: for most goods, the quantity demanded falls if the price rises. Certain unusual situations do not follow this law. These include Veblen goods, Giffen goods, and speculative bubbles where buyers are attracted to a commodity if its price rises. Demand curves are used to estimate behaviour in competitive markets and are often combined with supply curves to find the equilibrium price (the price at which sellers together are willing to sell the same amount as buye ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply-and-demand
In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted. The concept of supply and demand forms the theoretical basis of modern economics. In macroeconomics, as well, the aggregate demand-aggregate supply model has been used to depict how the quantity of total output and the aggregate price level may be determined in equilibrium. Graphical representations Supply schedule A supply schedule, depicted graphically as a supply curve, is a table that shows the relationship between the price of a good and the quantity supplied by producers. Under the assumpti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Normal Goods
In economics, a normal good is a type of a good which experiences an increase in demand due to an increase in income, unlike inferior goods, for which the opposite is observed. When there is an increase in a person's income, for example due to a wage rise, a good for which the demand rises due to the wage increase, is referred as a normal good. Conversely, the demand for normal goods declines when the income decreases, for example due to a wage decrease or layoffs. Analysis There is a positive correlation between the income and demand for normal goods, that is, the changes income and demand for normal goods moves in the same direction. That is to say, that normal goods have an elastic relationship for the demand of a good with the income of the person consuming the good. In economics, the concept of elasticity, and specifically income elasticity of demand is key to explain the concept of normal goods. Income elasticity of demand measures the magnitude of the change in demand f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Effect Of Taxes And Subsidies On Price
Taxes and subsidies change the price of goods and, as a result, the quantity consumed. There is a difference between an Ad valorem tax and a specific tax or subsidy in the way it is applied to the price of the good. In the end levying a tax moves the market to a new equilibrium where the price of a good paid by buyers increases and the proportion of the price received by sellers decreases. The incidence of a tax does not depend on whether the buyers or sellers are taxed since taxes levied on sellers are likely to be met by raising the price charged to buyers. Most of the burden of a tax falls on the less elastic side of the market because of a lower ability to respond to the tax by changing the quantity sold or bought. Introduction of a subsidy, on the other hand, may either lowers the price of production which encourages firms to produce more, or lowers the price paid by buyers, encouraging higher sales volume. Such a policy is beneficial both to sellers and buyers. Specific tax ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price–performance Ratio
In economics, engineering, business management and marketing the price–performance ratio is often written as cost–performance, cost–benefit or capability/price (C/P), refers to a product's ability to deliver performance, of any sort, for its price. Generally speaking, products with a lower price/performance ratio are more desirable on demand curve, excluding other factors. Even though this term would seem to be a straightforward ratio, when price performance is improved, better, or increased, it actually refers to the performance divided by the price, in other words exactly the opposite ratio (i.e. an inverse ratio) to rank a product as having an increased price/performance. Background of appearance Due to the prolonged low growth and economic slump, the proportion of consumption to income will inevitably decrease. However, they cannot completely give up their consumption, so they have found ways to maintain a similar level of consumption at a minimum cost. Examples Con ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand (economics)
In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item is a function of an item's perceived necessity, price, perceived quality, convenience, available alternatives, purchasers' disposable income and tastes, and many other options. Factors influencing demand Innumerable factors and circumstances affect a consumer's willingness or to buy a good. Some of the common factors are: The price of the commodity: The basic demand relationship is between potential prices of a good and the quantities that would be purchased at those prices. Generally, the relationship is negative, meaning that an increase in price will induce a decrease in the quantity demanded. This negative relationship is embodied in the downward slope of the consumer demand curve. The assumption of a negative relationship is reason ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Derived Demand
In economics, derived demand is demand for a factor of production or intermediate good that occurs as a result of the demand for another intermediate or final good. In essence, the demand for, say, a factor of production by a firm is dependent on the demand by consumers for the product produced by the firm. The term was first introduced by Alfred Marshall in his '' Principles of Economics'' Marshall, Alfred. "Principles of Economics". London: Macmillan, 1890, pp. 381-93, 852-6. in 1890. Demand for all factors of production is considered as derived demand. This is similar to the concept of joint demand or complementary goods, the quantity consumed of one of them depending positively on the quantity of the other consumed.Example if any goods is in production process by demanding capital automatically speed of production will increase that is directly demand or derived demand Examples Producers have a derived demand for employees. The employees themselves do not appear in the e ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Final Good
A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike a intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good, but the parts purchased to manufacture them are intermediate goods. When used in measures of national income and output, the term "final goods" includes only new goods. For example, gross domestic product (GDP) excludes items counted in an earlier year to prevent double counting based on resale of items. In that context, the economic definition of goods also includes what are commonly known as ''services''. Manufactured goods are goods that have been processed in any way. They are distinct from raw materials but include both intermediate goods and final goods. Law There are legal definitions. For example, the United States' Consumer Product Safety Act has an extensive definition of consumer product, which begins: CONSUMER PRODUCT.--The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Intermediate Good
Intermediate goods, producer goods or semi-finished products are goods, such as partly finished goods, used as inputs in the production of other goods including final goods. A firm may make and then use intermediate goods, or make and then sell, or buy then use them. In the production process, intermediate goods either become part of the final product, or are changed beyond recognition in the process. This means intermediate goods are resold among industries. Intermediate goods are not counted in a country's GDP, as that would mean double counting, as the final product only should be counted, and the value of the intermediate good is included in the value of the final good. The value-added method can be used to calculate the amount of intermediate goods incorporated into GDP. This approach counts every phase of processing included in production of final goods. Characterization of intermediate goods as physical goods can be misleading, since, in advanced economies, about half of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply And Demand-stacked4
Supply may refer to: *The amount of a resource that is available **Supply (economics), the amount of a product which is available to customers **Materiel, the goods and equipment for a military unit to fulfill its mission *Supply, as in confidence and supply, the provision of funds for government expenditure *Narcissistic supply, the way in which a narcissistic individual requires affirmation, approval, and admiration from others in the same way as the infant requires an external supply of food Places * Supply, North Carolina, an unincorporated community * Supply, Virginia, an unincorporated community Ships * HMS ''Supply'', eight ships of the Royal Navy of the United Kingdom * HMAS ''Supply'', two ships of the Royal Australian Navy * USS ''Supply'', four ships of the United States Navy People with the name *Supply Belcher (1751–1836), early American composer of the First New England School Entertainment * "Supplies" (song), by Justin Timberlake, from his 2018 album ''Man o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Elasticity Of Demand
A good's price elasticity of demand (E_d, PED) is a measure of how sensitive the quantity demanded is to its price. When the price rises, quantity demanded falls for almost any good, but it falls more for some than for others. The price elasticity gives the percentage change in quantity demanded when there is a one percent increase in price, holding everything else constant. If the elasticity is −2, that means a one percent price rise leads to a two percent decline in quantity demanded. Other elasticities measure how the quantity demanded changes with other variables (e.g. the income elasticity of demand for consumer income changes). Price elasticities are negative except in special cases. If a good is said to have an elasticity of 2, it almost always means that the good has an elasticity of −2 according to the formal definition. The phrase "more elastic" means that a good's elasticity has greater magnitude, ignoring the sign. Veblen and Giffen goods are two classes of go ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Absolute Value
In mathematics, the absolute value or modulus of a real number x, is the non-negative value without regard to its sign. Namely, , x, =x if is a positive number, and , x, =-x if x is negative (in which case negating x makes -x positive), and For example, the absolute value of 3 and the absolute value of −3 is The absolute value of a number may be thought of as its distance from zero. Generalisations of the absolute value for real numbers occur in a wide variety of mathematical settings. For example, an absolute value is also defined for the complex numbers, the quaternions, ordered rings, fields and vector spaces. The absolute value is closely related to the notions of magnitude, distance, and norm in various mathematical and physical contexts. Terminology and notation In 1806, Jean-Robert Argand introduced the term ''module'', meaning ''unit of measure'' in French, specifically for the ''complex'' absolute value,Oxford English Dictionary, Draft Revision, June 2008 an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Short-run
In economics, the long-run is a theoretical concept in which all markets are in equilibrium, and all prices and quantities have fully adjusted and are in equilibrium. The long-run contrasts with the short-run, in which there are some constraints and markets are not fully in equilibrium. More specifically, in microeconomics there are no fixed factors of production in the long-run, and there is enough time for adjustment so that there are no constraints preventing changing the output level by changing the capital stock or by entering or leaving an industry. This contrasts with the short-run, where some factors are variable (dependent on the quantity produced) and others are fixed (paid once), constraining entry or exit from an industry. In macroeconomics, the long-run is the period when the general price level, contractual wage rates, and expectations adjust fully to the state of the economy, in contrast to the short-run when these variables may not fully adjust. History The diff ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
