Explain that there are price-level changes that result from a balance between the needs of goods and the number of items that are available at that time. Line graph shows that when demand has increased from D1 to D2 will result from changes in the price level increases and the quantity of the item that will become the new balance point on the supply curve (S)]] supply and demand relating to microeconomics theory tries to explain and predict the price and quantity is reached, items that are being sold in the market competition. The story, which is one of the basic issues of the model. Common economic because it is often used as a basic ingredient for the economic theories and models, high floor.Generally. Information theory indicates that whenever the goods are sold in the market at price levels that consumer demand is greater than the number of items that can be produced, then there will be shortage of goods. Where such a situation would result in an increase in the price level of the item. By the consumer groups that are available for payment at the price level rises, it will result in higher market prices. In contrast, the price level will be lowered when the quantity of items that are greater than the needs that arise. The process will continue until the market reaches a balance point which is a point that does not contain any changes from occurring again. Whenever the manufacturer products that this balance point, which is a single-point-of-purchase agreement with the buyer the price level, and at this point, said that the market into equilibrium point.Theory of supply and demand is important for the functioning of the market system as it provides a mechanism for making decisions about the allocation of resources occurs. But the Office of neo classic dispute whether the relationship of supply and demand will take place under normal conditions, known as the general balance.The demand is the quantity requirements at a time when demand for such a requirement to be able to afford. (Willingness to pay) or must be a potential demand (effective demand) are most commonly used to show the relationship to the price level of demand will have a relationship in the opposite direction to the price level. That is when item price level increases. That type of requirement is reduced. However, this kind of demand, the term may be used with both the people and the country level, such as aggregate demand (aggregated demand), which means that the demand for goods and services across the country (macroeconomics)Supply is the quantity offered for sale items at one moment (and it must have the ability to produce the quantity of the item in the production level that has secured sales.) This can be used to supply the production unit to the manufacturer, by the quantity of supply will have the same direction in relation to the price level. That is when item price level increases. The seller is willing to sell an item in increasing quantities.
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