This document discusses demand, supply, and market equilibrium. It defines demand and supply, outlines factors that influence each, and describes the relationship between price, demand and supply. When demand and supply are equal, the market reaches equilibrium - the price where the quantity demanded equals the quantity supplied. The passage provides examples of demand and supply curves and equilibrium price and quantity points to illustrate these concepts.

1. Demand, Supply and the Market

7. Demand Function

11. O z = the number of outlets for a competitor product/service As = the level of advertising for the related product St z = the style or design of related product. Y = the income of consumers and distribution. T = the tastes or preferences of consumers E = the expectations of consumers with regard to price, etc. C r = the cost and availability of credit G = government policy Pop = the change in the population composition W = weather conditions

17. Supply function with ceteris paribus condition Qs x = f ( P x ) cet. par.

23. Find out demand and supply functions for real estate market

24. Qs x = 200 + 80P – 20a 1 – 15a 2 + 30j Where Qs x - quantity supplied of X, P is price of X, a 1, a 2 are profitability of two alternative goods that could be supplied instead, and j is the profitability of a good in joint supply. Explain why P and j terms have a positive sign, whereas a 1 and a 2 have a negative sign? Exercise

26. Equilibrium price and quantity Monthly price (Rs. Per kg) Md (tons) Ms (tons) 4 700 100 8 500 195 11 450 450 16 400 540 19 190 810