Introduction
This chapter covers the fundamental basics of Demand and Supply
analysis. The concept of a market in Economics: Determination of
market price in a perfectly competitive market structure - demand and supply schedules/curves (individual and aggregate), abnormal cases, factors influencing demand and supply of a consumer commodity, changes in demand, and supply relationships.
analysis. The concept of a market in Economics: Determination of
market price in a perfectly competitive market structure - demand and supply schedules/curves (individual and aggregate), abnormal cases, factors influencing demand and supply of a consumer commodity, changes in demand, and supply relationships.
Elasticities of demand and supply and their influence in equilibrium Conditions in different market structures. The price mechanism and its shortcomings in allocation of resources. Fluctuation of prices especially in agricultural products.
Price control/stabilization schemes by government to remove the weakness of the price mechanism. The negative consequences of such schemes. The application of price theory to the pricing of factors of production (elementary treatment).
