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Definition of demand and supply; law of demand and supply; variable that influence demand and supply; equilibrium Aims and Objectives of the lesson: By the end of the lesson learners will be able to: Identify the difference between demand and supply and the variables that influences demand and supply. Know the law of demand and supply
The law of demand states that other things remaining constant (ceteris paribus) the demand for a commodity expands with fall in its price and contracts with a rise in its price .In short, it shows inverse relationship between price of a commodity and its demand.
Displaying Theory of Demand and Supply.pdf.
Study the following graph which deals with the demand and supply of school shoes and answer the questions that follow: 1. At R15, how many pairs of shoes would consumers want to buy? Why are producers not prepared to sell at this price? 2. How many pairs of shoes are suppliers willing to sell at R15? 3.
This is where the demand and supply curves intersect - The law of demand states that as price increases, quantity demanded decreases, as consumers will buy less of a good that becomes more expensive. This relationship is shown through a demand schedule and demand curve.
Demand and supply Demand is the amount of a product that consumers are willing and able to purchase at any given price. It is assumed that this is effective demand, i.e. it is backed by money and an ability to buy. The law of demand states that the higher the price, the lower the quantity demanded; and the lower the
Demand and supply are the forces that make market economies work. These two together determine the price and quantity sold of a commodity or service. While buyers constitute the demand side of the market, sellers make the supply side of that market.
