➡️ Demand and supply curves are graphical representations of the relationship between the price of a good or service and the quantity of that good or service that is demanded or supplied.
➡️ Demand curves show the quantity of a good or service that consumers are willing and able to purchase at different prices.
➡️ Supply curves show the quantity of a good or service that producers are willing and able to supply at different prices.
➡️ The intersection of the demand and supply curves is known as the equilibrium price, which is the price at which the quantity demanded is equal to the quantity supplied.
➡️ Changes in demand or supply can cause the demand and supply curves to shift, resulting in a new equilibrium price.

➡️ Effective demand is the total amount of goods and services that consumers, businesses, and the government are willing and able to purchase at a given price level.

Market equilibrium occurs when the quantity demanded of a good or service equals the quantity supplied at a specific price. It represents a state of balance in the market, where there are no inherentforces for further price or quantity adjustments. At equilibrium, there is no shortage or surplus in the market. The equilibrium price, also known as the market-clearing price, is determined by the intersection of the supply and demand curves. Changes in supply or demand will cause shifts in the equilibrium, resulting in a new price and quantity. Market equilibrium is a key concept in understanding market dynamics, as it indicates the point at which buyers and sellers are willing to transact at a mutually agreed-upon price. It serves as a benchmark for analyzing market efficiency and identifying potential market imbalances.

➡️ Supply is the amount of a good or service that producers are willing and able to provide at a given price.
➡️ The main determinants of supply are price, cost of production, technology, expectations, number of suppliers, and government policies.
➡️ Price is the most important factor in determining supply, as producers will increase supply when the price of a good or service rises.
➡️ Cost of production is also a major factor in determining supply, as producers will only supply a good or service if it is profitable to do so.
➡️ Technology, expectations, number of suppliers, and government policies can also affect supply, as they can influence the cost of production and the availability of resources.

Individual supply refers to the quantity of a good or service that an individual producer is willing and able to offer for sale at various prices. It represents the supply behavior of a single producer. Market supply, on the other hand, refers to the total quantity of a good or service that all producers in a market are willing and able to offer for sale at various prices. Market supply is derived by aggregating the individual supply of all producers in the market. Understanding individual and market supply helps in analyzing producer behavior, market size, and the factors that influence supply at both the individual and aggregate levels.

➡️ Demand and supply are the two most important forces that determine the price and quantity of a good or service in a market.
➡️ Demand is the quantity of a good or service that consumers are willing and able to purchase at a given price.
➡️ Supply is the quantity of a good or service that producers are willing and able to produce at a given price.
➡️ Equilibrium price and quantity are the price and quantity at which the quantity demanded is equal to the quantity supplied.
➡️ Changes in demand and supply can cause the equilibrium price and quantity to change, resulting in a new equilibrium.

➡️ Demand is determined by a variety of factors, including income, prices of related goods, tastes and preferences, expectations, and the number of buyers in the market.
➡️ Income is a major factor in determining demand, as higher incomes lead to higher demand for goods and services.
➡️ Prices of related goods can also affect demand, as a decrease in the price of a substitute good can lead to an increase in demand for the original good.
➡️ Tastes and preferences of consumers also play a role in determining demand, as consumers may prefer certain goods over others.
➡️ Expectations of future prices and availability of goods can also affect demand, as consumers may be more likely to purchase goods if they expect prices to rise in the future.

➡️ Changes in consumer preferences: A shift in the demand curve can be caused by a change in consumer preferences, such as a change in tastes or a change in the price of a substitute or complementary good.

➡️ Changes in income: An increase in income can cause a shift in the demand curve, as consumers are able to purchase more of the good.

➡️ Changes in population: An increase in population can cause a shift in the demand curve, as more people are able to purchase the good.

➡️ Changes in expectations: Changes in expectations about the future price of a good can cause a shift in the demand curve, as consumers may be more or less likely to purchase the good.

➡️ Changes in prices of related goods: A change in the price of a related good can cause a shift in the demand curve, as consumers may substitute one good for another.

The conditions of supply refer to the factors that influence the quantity supplied of a good or service. These conditions include price, input costs, technology, government regulations, and expectations. Changes in any of these conditions can impact the supply curve and quantity supplied. For example, an increase in input costs, such as wages or raw materials, may decrease the supply of a product. Understanding the conditions of supply helps in analyzing producer behavior, predicting market trends, and formulating effective production and pricing strategies.

Price determination refers to the process by which prices for goods and services are established in a market economy. Prices are determined through the interaction of supply and demand. When supply and demand are in equilibrium, the market price is established, at which the quantity demanded equals the quantity supplied. Changes in supply and demand conditions lead to shifts in the equilibrium price. Price determination is influenced by factors such as market competition, consumer preferences, production costs, and government policies. Understanding the process of price determination is crucial for analyzing market dynamics, pricing strategies, and market efficiency.

Market disequilibrium occurs when the quantity demanded does not equal the quantity supplied at a given price. Disequilibrium arises due to imbalances between supply and demand, resulting in either a shortage or a surplus in the market. A shortage occurs when the quantity demanded exceeds the quantity supplied at the prevailing price, leading to upward pressure on prices. Conversely, a surplus occurs when the quantity supplied exceeds the quantity demanded, resulting in downward pressure on prices. Market disequilibrium signals that the market is not in balance and may prompt adjustments in prices, quantities, or resource allocation to restore equilibrium. Understanding market disequilibrium helps in analyzing market dynamics, price adjustments, and the factors that can disrupt market equilibrium.

Price changes refer to the fluctuations or adjustments in the prices of goods and services over time. Prices can increase (price rise or inflation) or decrease (price decline or deflation) due to various factors such as changes in supply and demand conditions, shifts in production costs, shifts in consumer preferences, or government policies. Price changes play a crucial role in resource allocation, consumer behavior, and market dynamics. They can impact the purchasing power of consumers, the profitability of businesses, and the overall stability of the economy. Analyzing price changes helps in understanding market trends, inflationary pressures, and the effects of price movements on different economic agents.