- Published: November 13, 2021
- Updated: November 13, 2021
- University / College: Oxford Brookes University
- Language: English
- Downloads: 24
Microeconomics for Business Decision Theory of Market Demand: The quantities of a product that people are willing and able to purchase at various prices during some specific time period, sisters periods. 1 QED = f(Pix, ad, income (normal good, inferior good), Pother (substitutes, complements), consumer expectation, regulations, number of buyers,…… ) . All factors except Pix either shift or rotate the Demand for good x.
Therefore, the linear demand function or good x is written as QED = a – џPix or, a – boxed Consumer Surplus (2 0 in a free market): technically it is the area below a demand curve and above the market price. Pix It tells us that consumers in the market for good x are willing to pay the company(s) this much more (Consumer Surplus) of extramoney. Demand is a function (a series of quantity demanded for various prices). Therefore, when price changes, there is no change in demand (when price changes, quantity demanded changes, not demand). Supply:
The quantities of a product that firms are willing and able to offer at various prices during some specific time period, sisters periods. 2 Ex. = g(Pix, input prices, technology, regulations, number of firms, producers’ expectation about the future, …. ). All factors except Pix either shift or rotate the Supply for good x. Therefore, the linear demand function for good x is written as Ex. = y + apex or, Pix= c + sq Producer Surplus: technically it is the area below the market price and above a supply curve. Pix sax Xx* much of extra discount.
Microeconomics Market Theory By Shatter Market Equilibrium: BP (buyers are willing and able to pay) = AS (sellers are willing and able to accept) CB (? are willing and able to purchase) = SQ (? are willing and able to produce) 2 Like demand, supply is also a function (a series of quantity supplied for various prices). Therefore, when price changes, there is no change in supply (when price changes, quantity supplied changes, not supply). Total Surplus = Consumer Surplus + Producers Surplus = Total Welfare of the Market
