The paper "Changes in Quantity Supplies, Non-Excludable Goods" is an outstanding example of a micro and macroeconomic assignment. The supply curve slopes upwards because at a higher price suppliers are willing to supply more products in the market. This helps to create a positive relationship between the price and quantity supplied. The changes in supply happen due to various factors like Change in cost of production. For example, if the cost of production falls supply of butter will increase Changes in price bring about a change in demand as suppliers supply more products at a higher price compared to products at a lower price Change in price of substitute.
For example, if the price of coffee rises the supply of tea will fall Change in the tax structure. For example, a reduction in tax will increase the supply of liquor Change in firms’ objectives. For example, the firm looks towards an increase in sales then supply will rise Future expectations of demand. For example, the firm expects demand for wheat to raise then supply will increase. Changes in quantity supplies happen when there is a change in the price of the goods whereas changes in supply curve occur when factors other than price changes.
An example of movement in the supply curve increase in the supply of bread due to the rise in price and an example of a shift in the demand curve is an increase in the supply of bread due to fall in price of flour. 2. A free market is a situation where the market forces determine the equilibrium quantity and price. The graph looks like The above graph shows a free market as supply and demand forces determine the equilibrium level.
This helps to differentiate between price and value. Price is the actual amount which a customer pays out of his pocket whereas value is the perceived value of the products and includes the nonmonetary parameters like satisfaction, pride, and others. Value is thus a much wider concept and people are willing to pay the price for the product when the perceived value is higher than the price paid for the product. Thus when equilibrium in the market is determined the value the customer perceives for the product matches the price and is the maximum amount that the customer is willing to pay for a particular product or service. An important aspect to note here is that value has some non-pricing parameters so products and services which are able to provide those are able to get a higher price thereby enabling the supplier to earn more.