Economics Demand and Supply
TITLE :
CHINA IMPORTS SLUMP, RAISING DEMAND CONCERNS
INTRODUCTION
Supply and Demand is perhaps one of the most fundamental concepts of economics. It is the backbone of a market economy. A market is defined as a group of consumers (demand) and producers (supply) of a particular product. Competitive markets are markets with many consumers and producers, so that each has very small influence on the price of that product. Supply and demand act as an economic model to show how consumers and producers interact in a competitive market. The market price of a product is determined by both the supply and demand for it. Demand refers to how much of a product is desired by consumers. Quantity demanded is the demand at a particular price, and is represented as the demand curve.( Cited http://www.basiceconomics.info/supply-and-demand.php, 14 February 2012.) Supply represents how much the producers can offer. Quantity supplied is the amount offered for sale at a particular price, and is represented as the supply curve. When demand and supply are equal, the economy is said to be in equilibrium. There may also be presence of disequilibrium between demand and supply too. There may be shifts in supply and demand too. (Cited http://www.netmba.com/econ/micro/supply-demand/ . 14 February 2012. )
SUMMARY
In January 2012, China’s imports fell the most since the global financial crisis. Demand may be weaker, even allowing shutdowns of Lunar New Year factory. Imports declined 15.3% in January 2012 versus January 2011 ( the lowest since August 2009 ) , to about US$122.7billion. Exports sank 0.5% over the same period, to about US$149.9billion. There was a trade surplus of US$27.3billion, resulting from big imports drop with smaller exports drop. China’s current account surplus relative to gross domestic product ( GDP ) decreased to 2.7% in 2011 compared to 5.1% in 2010, showing that China is relying less on external demand.
DISCUSSION
The main theory that is used in the
CHINA IMPORTS SLUMP, RAISING DEMAND CONCERNS
INTRODUCTION
Supply and Demand is perhaps one of the most fundamental concepts of economics. It is the backbone of a market economy. A market is defined as a group of consumers (demand) and producers (supply) of a particular product. Competitive markets are markets with many consumers and producers, so that each has very small influence on the price of that product. Supply and demand act as an economic model to show how consumers and producers interact in a competitive market. The market price of a product is determined by both the supply and demand for it. Demand refers to how much of a product is desired by consumers. Quantity demanded is the demand at a particular price, and is represented as the demand curve.( Cited http://www.basiceconomics.info/supply-and-demand.php, 14 February 2012.) Supply represents how much the producers can offer. Quantity supplied is the amount offered for sale at a particular price, and is represented as the supply curve. When demand and supply are equal, the economy is said to be in equilibrium. There may also be presence of disequilibrium between demand and supply too. There may be shifts in supply and demand too. (Cited http://www.netmba.com/econ/micro/supply-demand/ . 14 February 2012. )
SUMMARY
In January 2012, China’s imports fell the most since the global financial crisis. Demand may be weaker, even allowing shutdowns of Lunar New Year factory. Imports declined 15.3% in January 2012 versus January 2011 ( the lowest since August 2009 ) , to about US$122.7billion. Exports sank 0.5% over the same period, to about US$149.9billion. There was a trade surplus of US$27.3billion, resulting from big imports drop with smaller exports drop. China’s current account surplus relative to gross domestic product ( GDP ) decreased to 2.7% in 2011 compared to 5.1% in 2010, showing that China is relying less on external demand.
DISCUSSION
The main theory that is used in the
Cited: 14 February 2012. .