BACHELOR OF COMMERCE Study Guide - Final Guide: Monopolistic Competition, Market Power, Economic Equilibrium

• School: University of Calicut
• Department: Management
• Course: BACHELOR OF COMMERCE

Document Summary

The demand curve normally slopes downwards showing that more quantity of commodity will be demanded at a lower price than at a higher prices. Similarly supply curve showing an upward trend where the producers will offer to sell a larger quantity at a higher price school of distance. Education managerial economicspage 45 than at a lower price . Thus the quantity demanded and quantity supplied vary with price . the price that tends to settle down or comes to stay in the market (where both buyers and sellers are satisfied) is at which quantity demanded equals quantity supplied. The point so formed is known as equilibrium point and price is known as equilibrium price. According to marshall, time has great influence on the determination of price . the following are the market periods based on time- market period, short period and long period. In perfect competition the market price of a commodity is determined by its demand and supply.