K: Price Mechanism
What to produce?
How to produce?
To whom to produce?
H:
Is there anymore non-price determinant factors other than the ones listed in the book for supply curve?
L:
I know the theory of demand and supply.
I know the law of demand and supply.
I know the reason why demand curve has a inverse relationship between price and quantity demanded. ( Income and Substitution effect)
I know the reason why supply curve has a direct relationship between price and quantity demanded. ( Increasing marginal cost and allocation of resources to product that fetch a higher price)
I know that change in price causes a movement along the curve of both demand and supply.
I know that non-price determinant shifts demand and supply curve leftward and rightward.
The non-price determinant for demand is. Expectation of future price/Government Policy/Income/Price of related goods/Taste and Preferences and Population change
The non-price determinant for supply is Weather/Technology/Expectation of future pricing/Price of related goods/Input Prices/Government Policies/Number of Sellers.
I know how to explain market equilibrium
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