Wednesday, May 20, 2009
Economics-Supply and Demand
Today we are studying economics and haw the market works. The Practical uses of supply and demand analysis often center on the different variables that change equilibrium price and quantity, represented as shifts in the respective curves. Comparative statics of such a shift traces the effects from the initial equilibrium to the new equilibrium.
When consumers increase the quantity demanded at a given price, it is referred to as an increase in demand.