Quiz 4: Supply and Demand

Business

Demand curve is the curve which shows the relationship between quantity demanded and price of the good or service. Supply curve is curve which shows the relationship between quantity supplied and price of the good or service. The intersection of supply a demand curve gives the equilibrium price and quantity. Many times, when a person wants a job for which he needs to know someone in the company where he wants to work this indicate that workers are eager to work in that company. The basic reason behind this is that workers are being paid good wage which is above the market average wage which increases the supply of worker in that firm.

Demand curve is the curve which shows the relationship between quantity demanded and price of the good or service. Supply curve is curve which shows the relationship between quantity supplied and price of the good or service. The intersection of supply a demand curve gives the equilibrium price and quantity. In a centrally planned economy, the market is not governed by price mechanism but by political and social forces. Relationship between the demand and supply with price does not exist strongly in this economy. It is the central planners who decide what is to be produced, how good is to be produced and for whom the good is to be produced, therefore they decide and govern the supply and demand in a central economy.

Demand curve is the curve which shows the relationship between quantity demanded and price of the good or service. Supply curve is curve which shows the relationship between quantity supplied and price of the good or service. The intersection of supply a demand curve gives the equilibrium price and quantity. As per the law of demand, the price of a good or service and quantity demanded of that good is inversely related. When there is increase in price of a good then the thing become costly for the buyer so he reduces the consumption of that goods or stops buying it. Therefore, the demand of that good decreases.