Supply And Demand Of A Good Or Service

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Supply and demand is a fundamental factor in shaping the character of the marketplace. A demand refers to the specific quantity of a product /good or service that people are willing and able to buy at given price level, where supply of a good or service represents how much quantity people are willing and able to offer for sale at given price-level. There are various factors that demand and supply of a good or service depend on. Demand of a product depends on the price of the product, number of buyers in the market, tastes and preferences of consumer, consumer’s income, consumer expectations and prices of related commodities. Supply of a product depends on the price of that product, number of sellers in the market, technology, input…show more content…
Demand is determined by many factors other than price. The shift in demand curve occurs when there is a change in factors other than price, results in the shift of demand curve. For example, if level of income of an individual or a community rises, then demand will increase at the same price level leading demand curve to shift to the right. Similarly, if there is a fall in the disposable income of the consumers or rise in the prices of close substitute of a good or decline in consumer taste or goods are unavailable, etc., at the same price level, there is a fall or decrease in demand leading demand curve to shift to the left as shown in Figure 2 http://economicsconcepts.com/movement_vs_shift_of_demand_curve.htm In case of supply, if other factor changes except its own price, the supply curve will shift towards left or right at same price level. For example, For example, if production cost of a product increases, then the supply will decrease and the supply curve will shift towards right and if the production cost decreases, then supply will increase and the supply curve will shift towards left, as shown in figure: 3 With the help of above analysis of demand and supply, the analysis of demand and supply of certain resources in Australia can be done. Australia is famous for many resources such as mineral resource, agricultural resource, human resources and many more. Even though demand supply analysis of Australian resources
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