Supply Curve Between Price And Quantity

2126 Words Nov 25th, 2014 9 Pages
A market is a physical place where buyers and sellers come together in one place to transact with each other. The demand curve shows the relation between price and quantity demanded other things equal. The supply curve shows the relation between price and quantity supplied other things equal. Where these meet is the equilibrium. This is the output where firms should produce. A need is a necessity, something you can 't do without. A good example is food. If you don 't eat, you won 't survive for long. The market is mankind 's most valuable tool for meeting the needs of the people because only a market understands the needs and wants of customers, and how these differ. They also understand the buying behaviour of customers (why, what and how they buy) and the nature of demand in the market (how are prices set & the factors that influence the quantity of demand)
A very good example for markets meeting mankind’s needs is the electronic market. They provide an easier way for start-ups to enter a national market, particularly if the business has identified a small niche segment of that market. They tend to be highly price-competitive since it is quite easy for customers to search for products from a variety of suppliers and to compare the best prices available (just about every consumer goods market has one or more price comparison website). They also provide things that we didn’t even know we needed for example mobile phones. Who knew 30 years ago mobile phones would have been…
Open Document