Demand and Supply...Acer Notebook
Demand-Supply Analysis of
Acer Notebooks
Managerial Economics Assignment
Introduction
Supply and demand is one of the most fundamental concepts of economics and it is the backbone of a market economy. It is defined as an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium of price and quantity
DEMAND: The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.
A, B and C are points on the demand curve. Each point on the curve reflects a direct correlation between quantities of Acer Laptops demanded (Q) and corresponding price (P). So, at point A, the quantity demanded will be Q1 and the price will be P1, and so on. The demand relationship curve illustrates the inverse relationship between price and quantity demanded. The higher the price of a good the lower the quantity demanded (A), and the lower the price, the more the good will be in demand (C).
LAW OF DEMAND Law of demand is an economic law, which states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant.
Factors Affecting Demand
Price: Generally the relationship is negative meaning that an increase in price will induce a decrease in the quantity demanded.
Income: A lower income means that there is less to spend in total, so people spend less on some—and probably most— goods. As individual’s incomes rise, they tend to buy more of almost everything, even if prices don’t change.
Tastes or preferences: The greater the desire to own a good the more likely is people to buy the good. Tastes are based on historical, social and psychological forces.
Consumer expectations about future
Acer Notebooks
Managerial Economics Assignment
Introduction
Supply and demand is one of the most fundamental concepts of economics and it is the backbone of a market economy. It is defined as an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium of price and quantity
DEMAND: The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.
A, B and C are points on the demand curve. Each point on the curve reflects a direct correlation between quantities of Acer Laptops demanded (Q) and corresponding price (P). So, at point A, the quantity demanded will be Q1 and the price will be P1, and so on. The demand relationship curve illustrates the inverse relationship between price and quantity demanded. The higher the price of a good the lower the quantity demanded (A), and the lower the price, the more the good will be in demand (C).
LAW OF DEMAND Law of demand is an economic law, which states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant.
Factors Affecting Demand
Price: Generally the relationship is negative meaning that an increase in price will induce a decrease in the quantity demanded.
Income: A lower income means that there is less to spend in total, so people spend less on some—and probably most— goods. As individual’s incomes rise, they tend to buy more of almost everything, even if prices don’t change.
Tastes or preferences: The greater the desire to own a good the more likely is people to buy the good. Tastes are based on historical, social and psychological forces.
Consumer expectations about future