Understanding Mechanisms And Market Price

Posted by The New Economics Education

Understanding demand and supply, including the analytical tools developed by economists to better understand the process of economic tetjadi in society. In this section will discuss understanding the demand (Demand), supply (Supply), and the interaction between the two which together form the price (Price) on the market (Market).
The emphasis is how the relationship between the amount of goods bought or sold a man, and the price of that, what causes price changes, and how the reactions of buyers and sellers when there are price changes. With the help of this understanding, hopefully you can better understand how keerja price system and market economy in solving basic problems.

- Buyers and market prices: inquiry
- Seller den goods price: Offers
- Price of balance: interaction head den demand offerings on the market

What, how, and to whom. Moreover, why is the government in some ways to intervene to modify the free market system in the interests of society.

Buyers and prices: demand
To live worthily in society, people need a variety of goods and services. That can not be grown alone or in production, had to be purchased. Purchased mean people have to pay the price. How many of a certain item is purchased by the public depends on various factors:

How many buyers;
How much money do they have to spend;
How much expensive price of the goods;
What is the price of goods - other goods;

Including the requirement that goods pokokkah also fashion and consumer tastes. Prestige in society, and many others. Because not all factors that might take effect is discussed as well, in this article kite focus attention on the relationship between the number of goods / services would be purchased (Quantity demanded) and price (Price) stuff. Other factors that may influence the amount of the purchase was temporarily sidelined first by assuming "ceteris paribus".

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