1. Markets: purposes and functions

Market is an institution or mechanism which brings together buyers (“demanders”) and sellers (“suppliers”) of particular goods, services, or resources.

All institutions which link potential buyers with potential sellers are markets.

Markets can be:

local;

national;

international.

A market is an arrangement порядок through which buyers and sellers meet or communicate in order to trade торговля goods or services. It is a way in which buyers and sellers can do business together.

2. Demand

The quantity demanded of an item is the amount that buyers are willing and able to purchase over a period at a certain price, given all other influences on their decision to buy.

Demand is a relationship between the price of an item and the quantity demanded. количество потребовано

The term demand as used in economics is not a fixed number. It signifies означать how the quantity buyers will purchase varies изменяется with price, assuming that all other influences on the amount buyers will buy other than the price of the item is held fixed.

The Market Demand Curve and the Law of Demand

A demand schedule план is a table that shows how an item's quantity demanded would vary with price, other things being equal.

The table 1 shows a hypothetical demand schedule for grade A eggs sold per week in a local farmers' market. The first column of the table shows possible prices per dozen eggs. The quantity demanded, shown in the second column, represents the weekly number of eggs that buyers are willing and able to purchase at each price.

The schedule is based on the assumption предположение that there's no change in any other demand influence except price (table 3.1).

The schedule shows a number of possible outcomes последствия in the market.

The actual quantity purchased over the period depends on the price of eggs given all other determinants of the amount buyers will buy.

The data in the hypothetical demand schedule indicate an inverse relationship between price and quantity demanded. When price goes down, the quantity demanded goes up.

Table 3.1 a demand schedule for grade a eggs

Price (dollars per dozen)	Quantity demanded (dozens per week)
2,00	1 000
1,75	2 000
1,50	3 000
1,25	4 000
1,00	5 000
0,75	6 000
0,50	7 000
0,25	8 000

The law of demand states that, in general, other things being equal, the lower the price of the good, the greater the quantity of the good buyers will purchase over a given period. государства, что, вообще, при прочих равных условиях, чем ниже цена товара, тем больше количество товаров покупателей купит за установленный срок.

The law of demand can be derived извлекать as an implication скрытый смысл of an economic model based on rational behavior; it is also generally supported поддерживает by empirical evidence опытным путем. Other things being equal, lower prices induce убеждать us to buy more of an item пункт over a period because we enjoy additional net gains that weren’t possible at the higher price. In short, there is a negative or inverse relationship between price and quantity demanded. Economists call this inverse relationship the law of demand.

A demand curve is a graph of the data comprising включает a demand schedule список (fig. 3.1).

Figure 3.1. Demand curve