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2.-Application-of-Demand-and-Supply.pptx - APPLICATION OF...

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APPLICATION OFDEMAND AND SUPPLY
MARKETIt is an interactionbetween buyers andsellers of trading orexchange.
THREE TYPES OF MARKET1.Goods Market-it is where consumers buygoods.2.Labor Market-it is where workers offerservices and look for jobs, and whereemployers look for workers to hire.3.Financial Market-which includes the stockmarket where securities of corporations aretraded.
DEMANDIt is the willingness of aconsumer to buy a commodityat a given price.
Demand Function-it shows how the quantity demanded ofa good depends on its determinants, the most important ofwhich is the price of the good itself.Qd = f(P)This signifies that the quantity demanded for a goodis dependent on the price of that good.
Demand Schedule-it shows the various quantitiesthe consumer is willing to buy at a various price.Table 2.1 Hypothetical Demand Schedule of Martha for Vinegar (in bottles)Price per bottleNumber of bottlesP0625446382101
Figure 2.1 Hypothetical Demand Curve of Martha for Vinegar (in bottles) for One Month

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