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Suppy law

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Transcript

Unit 2Demand and Supply law

1.2 Supply

For this unit it´s important to

  • Revise key concepts
  • Understand the meaning of market
  • Think allways as a seller

What is a Market Economy?

A market economy is an economic system in which decisions and pricing of goods and services are guided by the interactions of buyers and sellers

SUPPLY

QUANTITY SUPPLIED

vs

Relationship between a range of prices and the quantities supplied at those prices—a relationship that can be illustrated with a supply curve or a supply schedule.

A certain point on the supply curve, or one quantity on the supply schedule.

The law of supply states that a higher price leads to a higher quantity supplied and that a lower price leads to a lower quantity supplied.

THE DEMAND SUPPLY

Being all other factors equal, there is an inverse relationship between a good’s price and the quantity consumers demand

SUPPLY SCHEDULE

a table describing all of the quantities of a good or service; the supply schedule is the data on price and quantities supplied that can be used to create a supply curve

determinants in supply

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PRACTICE

Link

VIDEO REVISION