Factors affecting Supply and Demand.

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Factors affecting Supply and Demand

Economic require us to study demand and supply in order to understand consumer behaviors and the determination of price levels. Demand, in definition, is "the quantity of goods or services that will be bought at any given price over a period of time and supply is the willingness and ability to sell a good or service". (Alain Anderton, 1991, Economics Third Edition) A market exists wherever there are buyers and sellers of a particular good. Buyers demand goods from the market whilst sellers supply goods to the market. The same as the supply, individual and market demand information can be expressed in the form of curve.

Now I will examine factors that represent shifts in demand and supply curves. Firstly, I will consider the demand curve. Think about what factors determine how much of some goods you want to buy.

Price of the good is really a significant factor. When we talk about quantity demanded, normally we are take place on a given demand curve. The price of good is only that affects these curves will have changed. If something others have changed, the demand curve change. It is not hard