Demand And The Price Of Demand

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Supply is defined as a stock or amount of something that is available for use; the quantity supplied of a good or service is an amount that producers plan on selling during a particular time period at a particular price. (Parkin, 2013) The amount a business can supply does not always equal the amount sold and so in order for a business to know how much to offer they need to find out the demand; demand is defined as a particular desire for a commodity, service or other item. It resembles the amount that customers plan to buy during a certain period of time at a particular price. (Parkin, 2013)
Firstly, demand represents the popularity of a certain good or service and so has a strong relationship with the quantity supplied. Price, however,
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(Parkin, 2013, p.62)
This graph represents the supply curve following on from the Law of Supply:

Supply is influenced on factors such as the number of producers for that certain good or service, technological advances, changes in cost and finally a change in indirect taxes.
Equilibrium is the term used when both the quantity supplied equals the quantity demanded. The relationship between supply and demand is best described in the work of John Locke: “The price of any commodity rises or falls by the proportion of the number of buyer and sellers” and “that which regulates the price... [of goods] is nothing else but their quantity in proportion to their rent.” (Locke, 1691) Locke illustrates how prices of things fluctuate depending on the amount there is of them in proportion to how many there are available; this graph depicts this correlation.

1b) Define and then explain the key drivers of Economic Growth.
Economic Growth is the key indicator of how successful a country is doing in terms of business; in order to calculate the economic growth of a country in order to analyse and compare we look at the measurement of its Gross Domestic Product (GDP). The formula for calculating this national income per year is expressed as ‘Y = C + I + E + G’ (Investopedia, 2003) where consumer spending, industry investment, excess of exports over imports and
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