Equilibrium Every market has a demand side and a supply side and where these two forces are in balance it is said that the markets are at equilibrium. The Demand Schedule: The Demand side can be represented by law of downward sloping demand curve. When the price of commodity is raised (ad other things held constant)‚ buyers tend to buy less of the commodity. Similarly when the price is lowered‚ other things being constant‚ quantity demanded increases. The above figure shows quantity demanded
Premium Supply and demand
The term structure of interest rates‚ also known as the yield curve‚ is a very common bond valuation method. Constructed by graphing the yield to maturities and the respective maturity dates of benchmark fixed-income securities‚ the yield curve is a measure of the market’s expectations of future interest rates given the current market conditions. Treasuries‚ issued by the federal government‚ are considered risk-free‚ and as such‚ their yields are often used as the benchmarks for fixed-income securities
Premium Bond
the supply and demand curves to shift? Give examples and explain the direction in which the curves shift. There are some detailed determinants that are actually associated with the supply or “shifts in supply” can be recognized to the following alterations as well as modifications: 1. Resource prices. If the cost prices of the reserve of iron ore and coke are higher than it enhance the rate of producing steel‚ grasp earnings as well as shrink supply. Then the supply curve will move to the left
Premium Supply and demand
Discuss the rationale behind the WS and PS curves (12 marks) Keynesian macroeconomics assumes that markets are imperfect and this as the result of lack of competition. The implication of imperfect market is that agents are no longer price takers as in perfect markets‚ but become price setters. In product markets the firms are price setters considering the elasticity of demand which is partly dependant on competition. In the labour market‚ workers are the wage setters. Through collective bargaining
Premium Supply and demand Unemployment Employment
AND DEMAND MADE SIMPLE DEMAND 1 The demand curve is downward-sloping because as the price of a good rises‚ consumers will buy less of it. 2 If the price of a good changes‚ move along the existing demand curve. Do not shift the demand curve. This is called a “change in quantity demanded.” 3 If anything other than the price of the good changes‚ shift the demand curve for the good. This is called a “change in demand.” Shift the demand curve to the right (left) to show an increase (decrease)
Premium Supply and demand
INTRODUCTION TO NORMAL DISTRIBUTIONS The normal distribution is the most important and most widely used distribution in statistics. It is sometimes called the "bell curve‚" although the tonal qualities of such a bell would be less than pleasing. It is also called the "Gaussian curve" after the mathematician Karl Friedrich Gauss. As you will see in the section on the history of the normal distribution‚ although Gauss played an important role in its history‚ Abraham de Moivre first discovered the
Premium Normal distribution
short-run marginal cost curve is generally U-shaped‚ reflecting the law of diminishing marginal returns. Also‚ the marginal cost curve intersects both the average total cost and average variable cost curves at their lowest points. The long-run average total cost curve shows the minimum cost per unit of producing each output level when we can construct any desired size of a factory. Economies of scale and diseconomies of scale account for the U-shaped appearance of this cost curve. In discussing the
Premium Costs Economics of production Average cost
Managerial Economics Unit 6 Unit 6 Cost Analysis Structure: 6.1 Introduction Case Let Objectives 6.2 Types of Costs 6.3 Cost-Output Relationship: Cost Function 6.4 Cost-Output Relationships in the Short Run 6.5 Cost-Output Relationships in the Long Run 6.6 Summary 6.7 Glossary 6.8 Terminal Questions 6.9 Answers 6.10 Case Study Reference/E-Reference 6.1 Introduction In the previous unit‚ we learnt that output does not always increase proportionately‚ with increase
Premium Costs Marginal cost Cost
imposes tax on producer. This will lead to: a. a right shift in supply curve b. a left shift in supply curve c. a movement in supply curve d. a movement in demand curve 2. Assume that A’s supply is constant‚ A and B are substitute goods. The decrease in B’s price will lead to: a. a rightward shift in A’s demand curve b. a rightward shift in B’s demand curve c. a leftward shift in B’s demand curve d. None 3. The Engel curve describes the relationship between: a. Price and quantity demanded
Premium Supply and demand
of implicit costs). 8-4 (Key Question) Complete the following table by calculating marginal product and average product from the data given. Plot total‚ marginal‚ and average product and explain in detail the relationship between each pair of curves. Explain why marginal product first rises‚ then declines‚ and ultimately becomes negative. What bearing does the law of diminishing returns have on short‑run costs? Be specific. “When marginal product is rising‚ marginal cost is falling. And
Premium Economics of production Variable cost Costs