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Essay

Analysing Current Economic Issues

Essay specific features

 

Issue:

Business

 

Written by:

Timothy B

 

Date added:

October 3, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1146

 

Was viewed:

5860 times

 

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Essay content:

Therefore, the higher the price of a good, the less of the quantity demanded and vice versa. The demand theory can be best represented in a graph which is a descending slope. At point A, the price is at P1 and the quantity demanded is at Q1. It shows that if the price of a product is too high, there would be less demand for it...
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Whereas, at point C, the price is at P3 and the quantity demanded is at Q3. When the price is low, there would be a high demand for the product. Thus, market forces will ultimately shift to point B where the price at P2 and quantity demanded at Q2 can meet (equilibrium). The positive side of demand is that it creates jobs as workforce is needed to produce the products in accordance to the quantity demanded...
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