January 3, 2024

Market Rational forces Vs Market Forces:part three


Unlike in the mordern market we have the fundamental framework of demand side and supply side.The first represented by a demand curve that shows the amount of a given commodity that buyers will buy at various prices and latter indicates supply curve that shows the amount of a given commodity that supplier or seller supplies or will sell at various prices.Take the demand curve for instance that tends to slope downward to the right.Take the farm price of wheat for instance and the quantity demanded to show as price in the vertical axis goes up quantity demanded for the commodity in the horizontal axis falls.In this wheat market irrational consumers tends to buy more wheat at more prices say $2 or $3 per bushel than at $5 or $6 per bushel and logics support this axiom.This demand curve better explains changing snapshots of the market on a daily basis and as these tastes and income of the number of consumers and prices shift,demand curve also shifts with them.








In this market inequalities only those who have power to demand to buy and only those with power to supply supply.

No comments:

Post a Comment