Home work help, Microeconomics

Assignment Help:
Exercise on Demand, supply and market equilibrium

Given the following determinants of demand and supply, briefly explain, using appropriate diagram, the nature of relationships between changes in individual determinants and corresponding changes in demand or supply of a particular product.


Determinants of demand:

D = F ( Po| Y, Pr,T, E,Nb)

Where,

D = Demand for a particular product
Po = Price of the respective product ( own price)
Y = income earned by a consumer
Pr = price of related goods substitute or compliment
T = tastes and preferences of consumers
E = expectation about future changes in price, income or wealth, etc
Nb = number of buyers

Determinants of supply:

S= F( Po| Pi, Pr,T,E,Ns)

Where,
S = supply of a particular product
Po = price of the respective product (own price)
Pi = price of inputs required to make production
P r= price of related good substitute or complement
T = technology used in production
E = Expectations about future changes in the price of the product
Ns = number of sellers in the market

Related Discussions:- Home work help

Formation of nitrobenzene , reaction of mechanism of nitrous acid with benz...

reaction of mechanism of nitrous acid with benzene diazonium chloride in presence of Cuperous oxide

The economy is in the steady state, Assume in the Solow growth model that s...

Assume in the Solow growth model that s=.25, n=.02, d=.08, and f(k)=k^3. A)    Assume that z=2.  What is the steady state level of capital per worker and consumption per worker?

Return on equity and sales tax, Return on Equity: It's a measure of busine...

Return on Equity: It's a measure of business profitability equal to net after-tax income divided by average level of shareholders' equity in the business. Sales Tax: A tax im

Price elasticity of demand , Describe what the price elasticity of demand i...

Describe what the price elasticity of demand is and why it is of interest in examining markets.  Might it be beneficial in the airline industry?  Why?

Budget constraints, Budget Constraints   * The Budget Line - The budg...

Budget Constraints   * The Budget Line - The budget line indicates all the combinations of 2 commodities for which total money spent equals the total income. * The Budget

Diversification, Diversification  - Assume that a firm has a choice of ...

Diversification  - Assume that a firm has a choice of selling air conditioners, heaters, or both of them. - The probability of it being hot or cold is 5%. - The firm woul

Allocated stock and safety stock - mrp system, Allocated Stock and Safety S...

Allocated Stock and Safety Stock  Allocated stock  A category of stock which ensures that current stock is set aside and not issued under the normal procedure.  Safet

Economic appraisal, Economic appraisal - Appraisal , which seeks to quantif...

Economic appraisal - Appraisal , which seeks to quantify, and where possible calculate the welfare impacts from, the costs and benefits of a project or policy.

State property regime , State Property Regime Normal 0 ...

State Property Regime Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Why is investment so important in an economy, Why is investment so importan...

Why is investment so important in an economy? Define investment as an enhance in capital stock and link this to broad macro issues; future output, enhance in living standards, ta

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd