Economics

• Market


  Where buyers and sellers meet to exchange goods and services against a payment
• Effective demand


  Willingness and ability to buy a commodity at a given price over a given period of time
• Law of demand


  More is bought at a lower price than higher price and vice-versa
• Law of demand


  1. P ↑ Qd

  2. P ↓ Qd ↑
• Demand schedule


  A table which shows the quantity demanded of commodities at given prices
• Demand curve


  A diagram that shows the quantity demanded of a commodity at each price
• Factors affecting demand of a product

  • Price of the product itself
  • Income of consumer
  • Population
  • Tastes and preferences
  • Climate
• Price of the product itself


  • A fall in price will increase the quantity demanded, and vice versa
• Income of consumer


  • More is bought when income increases
• Population


  • An increase in population would cause an increase in the demand for commodities, for e.g, food, education and healthcare
• Tastes and preferences


  • Fashionable items are trendy and usually high in demand, for example, slim fit jeans
• Climate


  • People buy some specific commodities in particular climate, for example, demand of warm clothes will increase in winter
• Supply


  The quantity of a commodity offered for sale by sellers on the market at a given price and time
• Law of supply


  A rise in the price of a commodity will raise quantity supplied, and vice versa
• Law of supply


  P ↑ Qs ↑
• Supply schedule


  A table which shows the quantity supplied of commodities at each price
• Supply curve


  A diagram that shows the quantity supplied at each price