Reflection Paper Economics Essay

All in all, essential refers to how much ( meter) of a product or service is desired by sullyers. And it is determined by the determinants like taste and preferences, income, population and determine expectation. harm must always come first. Consumers argon more tend to buy a product. if the equipment casualty decreases. This kind of behavior on the part of buyers is in accordance with the police force of command. According to the law of nature of beseech, an inverse relationship exists amidst the price of a good and the total demanded of that good. As the price of a good goes up, buyers demand less of that good.This law will only be valid if ceteris paribus assumption is applied that means all other things be equal or constant. It means that the determinants of demand must be constant. This inverse relationship is more readily seen using the graphical art known as the demand curl, which is nothing more than a graph of the demand schedule. Change in demand means the ch ange in the determinants of demand. So, an increase in demand shifts the demand curve to the right age a decrease in demand shifts a demand curve into the left. If there is a change in demand, there is to a fault a change in quantity demand, this is different to change in demand because it only shows a movement from one station to another point (a price-quantity combination to another price-quantity combination).Another thing is the cede, it is the schedule of various quantities of commodities which producers are willing and able to produce and offer at a given, place, price and time. Its determinants are technology, cost of production, number of sellers, prices of other goods, price expectation and taxes and subsidies. The law of picture states that as price increases, quantity demanded increases and as price decreases, quantity demanded also decreases.According to the law of supply, a direct relationship exists between the price of a good and the quantity supplied of that good . As the price of a good increases, sellers are willing to supply more of that good. The law of supply is also reflected in the upward-sloping supply curve. A change in the quantity supplied is a movement along the supply curve due to a change in the price of the good supplied and a change in supply, like a change in demand, is represented by a shift in the supply curve.Law of demand and supply explains that when the demand is greater than supply, price increases and when supply is greater than demand, price decreases. The law of supply and demand is not an actual law but it is well substantiate and understood realization that if you have a lot of one item, the price for that item should go down. At the same time you need to regard the interaction even if you have a high supply, if the demand is also high, the price could also be high. In the world of stock investing, the law of supply and demand can contribute to explaining a stocks price at any given time. It is the base to any economic understanding.