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SS&FA/C - Equilibrium in the very short period - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI
SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI

SS&FA/C - Equilibrium in the very short period - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

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SS&FA/C - Equilibrium in the very short period - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN
EQUILIBRIUM IN THE VERY SHORT PERIOD (OR) MARKET PERIOD ENGINEERING ECONOMICS & FINANCIAL ACCOUNTING CS FINAL YEAR & IT THIRD YEAR
Dr.K.Baranidharan Present by 331-07-2013
Engineering Economics & Financial Accounting MANAGERIAL ECONOMICS 431-07-2013
EQUILIBRIUM IN THE VERY SHORT PERIOD (OR) MARKET PERIOD
OP as the original market price, OQ the equilibrium quantity demanded and SS as the supply curve of mangoes. The supply curve of mangoes for example is fixed in the market period and the supply cannot be increased. When the demand for mangoes increase, demand curve DD shifts to D1D1.
The price of the mangoes goes up from OP to OP1 because the supply is fixes. The supply in the market continues to be SS though the demand has increased. Because the supply is fixed in the market period, the price rise when the demand increases.
When the demand decreases, the demand curve shifts to the left. Demand curve DD shifts to the left and its D2D2 is the new demand as a result, the price falls. Thus, demand decides the price in the market period as the supply is fixes and cannot be altered.
Dr.K.Baranidharan Thank you K YOU 931-07-2013
1031-07-2013

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SS&FA/C - Equilibrium in the very short period - FINAL YEAR CS/IT - SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI - Dr.K.BARANIDHARAN

  • 2. EQUILIBRIUM IN THE VERY SHORT PERIOD (OR) MARKET PERIOD ENGINEERING ECONOMICS & FINANCIAL ACCOUNTING CS FINAL YEAR & IT THIRD YEAR
  • 4. Engineering Economics & Financial Accounting MANAGERIAL ECONOMICS 431-07-2013
  • 5. EQUILIBRIUM IN THE VERY SHORT PERIOD (OR) MARKET PERIOD
  • 6. OP as the original market price, OQ the equilibrium quantity demanded and SS as the supply curve of mangoes. The supply curve of mangoes for example is fixed in the market period and the supply cannot be increased. When the demand for mangoes increase, demand curve DD shifts to D1D1.
  • 7. The price of the mangoes goes up from OP to OP1 because the supply is fixes. The supply in the market continues to be SS though the demand has increased. Because the supply is fixed in the market period, the price rise when the demand increases.
  • 8. When the demand decreases, the demand curve shifts to the left. Demand curve DD shifts to the left and its D2D2 is the new demand as a result, the price falls. Thus, demand decides the price in the market period as the supply is fixes and cannot be altered.