The term "law" means nothing more than a general proposition or statement of tendencies, more or less certain, more or less definite... a social law is a statement if social tendencies; that is, that a certain course of action may be expected from the members of a social group under certain conditions.
Why the demand curve slopes down:
(1) higher prices of a certain good means a higher opportunity cost
(2) the law of diminishing marginal utility
As long as households have limited income and wealth, all demand curves will intersect the price axis. For any commodity, there is always a price above which a household will not or cannot pay.
Demand in a given period of time is limited, if only by time, even at a zero price.(take the law of diminishing marginal utility into consideration)
Supply:
Often an individual firm's ability to respond to an increase price is constrained by its existing scale of operations, or capacity, in the short run.
Price rationing: The process by which the market system allocates goods and services to consumers when quantity demanded exceeds quantity supplied or vice versa.
When quantity demanded exceeds quantity supplied, price tends to rise. When the price in a market rises, quantity demanded falls and quantity supplied rises until an equilibrium is reached at which quantity demanded and quantity supplied are equal.
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