Tuesday, 21 September 2010

The law of supply and demand

Supply and demand is an economic model of prize determination in the market. It says that in the competitive market prize of the particular good will vary until it reaches prize EQUILIBRIUM, which is the point where quanity supplied by the producers equals the quantity demanded by the consumers.
It means that the product prize is an index showing us whether the supply or demand for this particular product is rising or falling.

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