interactions between demand, supply and price

1. The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and vice versa.
2. The law of supply states that as the price of a good or service increases, the quantity supplied increases, and vice versa.
3. The intersection of the demand and supply curves determines the equilibrium price and quantity in a market.
4. Changes in demand or supply can shift the curves, leading to changes in the equilibrium price and quantity.
5. Elasticity of demand and supply measures the responsiveness of quantity demanded or supplied to changes in price.
6. Inelastic demand or supply means that quantity demanded or supplied does not change much in response to changes in price.
7. Price floors and price ceilings are government interventions that can affect the equilibrium price and quantity in a market.
8. Market failures occur when the market fails to allocate resources efficiently, such as in the case of externalities or public goods.
9. Monopoly power can lead to market inefficiencies, such as higher prices and lower output than in a competitive market.
10. International trade can affect the domestic market by increasing or decreasing demand or supply, leading to changes in the equilibrium price and quantity.