Demand and SupplyHere we introduce the basic concept of demand and supply.
At first, we define what the market is and what the price is. If you wanna learn the economics, you should know definitely that the market price of a product is the opportunity cost forgone highest value of other alternatives.
Then we define demand and the quantity demanded.
We try to answer that other things remaining the same, does the quantity demanded of a product change as its price changes?
The answer is the law of demand.
We give a example of coffee bean to explain demand and quantity demanded, to distinguish between a change in demand versus a change in the quantity demanded.
We wanna you can answer the following questions after you learned the concept of demand.
- Define the quantity demanded of a product.
- Try to illustrate the law of demand.
- Try to illustrate the difference between a change in demand and a change in quantity demanded.