Title: Market Failure

Essay Details

Subject: Business
Author: Alan J
Date: October 16, 2014
Level: University
Grade: A
Length: 8 / 2396
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

Figure 1 and 2 below explain how demand and supply changes with price. Figure 1 shows an inversely proportional relationship of demand and the price. Demand increase from Q1 to Q2 when price drops from P1 to P2. This explains why post Christmas sales attracts huge crowd to the shopping mall. Figure 2 shows a direct proportional relationship of supply and the price...

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Figure 2 shows a direct proportional relationship of supply and the price. Supply quantity increase from Q3 to Q4 as the price of goods or services increase from P3 to P4. Supplier tends to produce more at higher selling price as it means higher profit for the supplier. This can be seen in agriculture industries where Malaysia and Indonesia where palm oil production increased significantly when the profit is high...

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