• DETERMINATION OF PRICE BY DEMAND AND SUPPLY
    AGRICULTURAL SCIENCE

    DETERMINATION OF PRICE BY DEMAND AND SUPPLY

    In a market, there are buyers and sellers. The buyers bring their money to the market to buy the goods (demand) while the sellers bring the goods to the market for sale (supply). Market equilibrium is determined by the interaction of the forces of demand and supply which is influenced by price. Equilibrium price is that price at which the quantity demanded is equal to the quantity of goods supplied. The point where the demand curve meets the supply curve is called equilibrium position or equilibrium point. Under this condition, both producers (suppliers) and consumers (buyers) can be satisfied and there will be no pressure on prices. Market equilibrium can…

  • PRINCIPLES OF DEMAND
    AGRICULTURAL SCIENCE

    PRINCIPLES OF DEMAND

    In order to know how a market economy works and how resources are allocated in an economic system, it is very important to understand what determines the demand and supply of goods and services.   DEMAND Demand may be defined as the quantity of goods a consumer is willing and ready to buy at a given price over a given period of time. It is also defined as the ability and willingness to buy specific quantities of goods or services at alternative prices, over a given period of time. When a consumer’s demand is backed up by the necessary ability and willingness to pay, it is said to be effective…

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