How is price mechanism or supply and demand concerned, Biology

Assignment Help:

How is price mechanism or supply and demand concerned?

 

The price mechanism or supply and demand:

The price mechanism or supply and demand is concerned with how buyers and sellers interact together in order to arrive at a market price. Where demand equals supply this would be at the ‘equilibrium price and quantity’, always found automatically within a perfectly competitive market when buyers and sellers interact. The price mechanism is used also to explain how a free market economy or the private sector allocates resources and determines a market price within an industry.

780_The price mechanism or supply and demand.png

The equilibrium quantity and price Q1 and P1 is represented through the diagram as demonstrated above, here is no shortage or surplus into the market or demand equals supply and hence the market is into equilibrium (or balance) along with no downward or upward pressure for prices to increase or fall correspondingly.


Related Discussions:- How is price mechanism or supply and demand concerned

Define colonization of the gut - probiotic effect, Define colonization of t...

Define colonization of the gut - probiotic effect? It is not clear how probiotics influence the flora and produce a beneficial effect. However, colonization of the gut appears

Epidemiological theory - accident causation, Epidemiological Theory - Accid...

Epidemiological Theory - Accident Causation Epidemiological theory of accident causation considers industrial hygiene that concerns environmental issues and may result in sick

What is the function of vitamin e, Q. What is the function of vitamin E? In...

Q. What is the function of vitamin E? In which foods can it be found? Vitamin E is also known as tocopherol is a fat-soluble vitamin that participates as coenzyme in the respir

How are living beings divided into two groups, According to cellular organi...

According to cellular organization how are living beings divided into two groups? Cellular beings are separated into two groups: the prokaryotes, unicellular beings whose sole

Define key concepts and facts on properties of monosaccharid, Define Key Co...

Define Key Concepts and Facts on Properties of Monosaccharides? 1. All monosaccharides are soluble in water. 2. All monosaccharides give Molisch's test. 3. Monosaccharides do n

Define the dietary guidelines, Define the Dietary Guidelines? Dietary G...

Define the Dietary Guidelines? Dietary Guidelines are becoming increasingly powerful tools to help the general public to appreciate the role of diet in prevention of degenerati

Explain monosaccharides, Monosaccharides :- Sugars consisting of  a  sin...

Monosaccharides :- Sugars consisting of  a  single  polyhydroxy  aldehyde or ketone unit.

Draw decanol, Draw decanol, plamitic acid (C16:0 fatty acid) and the result...

Draw decanol, plamitic acid (C16:0 fatty acid) and the resulting wax ester generated by a dehydration reaction between both molecules.

What is the genetic disease in which this factor is absent, What is factor ...

What is factor VIII? What is the genetic disease in which this factor is absent? Factor VIII has the function of activating factor X that in its turn is essential for the trans

Explain about the endocrine system, Why is the endocrine system considered ...

Why is the endocrine system considered one of the integrative systems of the body? What is the other physiological system that also has this function? The endocrine system is s

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