How Do Supply And Demand Work

How does Supply and Demand work? First, you have to know what Supply and Demand stands for. Supply is a good or product that is provided to a person at a certain price. Demand is the desire of a consumer to pay a price for a certain good. The Non-Price determinant of Demand is measured by Taste, Income, Market size, Expectation and Related goods also known as T-I-M-E-R. Supply is measured by Technology Inputs, Government regulations, Goods, Expectations, Rate, and Number of sellers and is referred to as T-I-G-G-E-R-S. The only way that a shift in Quantity demand and supply changes is if a change in one of the variables such as price occurs. If, a company were to produce less of a product or good their supply curve would shift to the left but

However if a form of success occurs such as good advertisement, it would cause a rise on demand and shift the demand curve to the right. In order for everything to go according to precise regulations and earn profit there needs to be equilibrium within the productivity system that makes quantity demand and quantity supply become equal when this does not happen it causes a disequilibrium which occurs when the price or quantity is not equal to the price of goods and the quantity. Such changes could lead to a shortage in the quantity of supply that is too many consumers wanting the same product or good and not making enough products within a market system, as well as a surplus in quantity demand also known as overproduction or simply having a high price on a product that leads to consumers not wanting to buy the products. In all terms everything has to be pure competition making everything the same and accessible to anyone. There are such requirements one must follow as a seller and as

If unemployment were to rise, GDP would decline, and the CPI declines as well, to prevent such shifts and get more money into the economy a job expansion needs to happen. If unemployment were to drop, GDP would increase, and the CPI would increase as well, the fed would use job recession. An unemployment rise would cause an economic slowdown. More government spending would be labeled as an expenditure budget deficit policy, as for a less government spending would be labeled as a budget surplus policy. Methods to raise revenues included various different taxes such as, progressive tax, regressive tax, proportional tax and tariffs. Federal Revenues included income taxes, payroll taxes, corporate taxes and excise taxes. Federal Expenditures were placed to be used for education, health, homeland, state and other environmental expenses. To uphold such laws and restrictions the U. S set up a Federal Reserve System Structure that included the board of governors and 12 federal reserve banks located throughout the country, they promote the health of the economy and stabilize the U. S financial system. The Federal Reserve is the central banking system of the United States. Later on the government set up a policy to make it easier to implement money; these included discount rates, reserve requirements, and open market operations. Open Market transactions are orders placed by an