Supply and demand
From Simple English Wikipedia, the free encyclopedia
Supply and demand is a model of microeconomics. It looks at how a price is formed. This is done because producers and consumers interact with each other. This will fix the price for a certain type of good. In Perfect competition the quantity demanded (demand) and the quantity supplied will be equal. This will fix the price. There will be economic equilibrium.
It was Alfred Marshall who first described the model.
[edit] External links
- "Marshallian Cross Diagrams and Their Uses before Alfred Marshall: The Origins of Supply and Demand Geometry" by Thomas Humphrey (via the Richmond Fed)
- Supply and Demand book by Hubert D. Henderson at Project Gutenberg.
- Price Theory and Applications by Steven E. Landsburg ISBN 0-538-88206-9
- An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith, 1776 [1]
- By what is the price of a commodity determined?, a brief statement of Karl Marx's rival account [2]
Topics in microeconomics |
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Scarcity • Opportunity cost • Supply and demand • Elasticity • Economic surplus • Economic shortage • Aggregation of individual demand to total, or market, demand • Consumer theory • Production, costs, and pricing • Market forms • Welfare economics • Market failure |