William Mceachern's Microeconomics: The Law Of Demand
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Based on the book “ Microeconomics: A Contemporary Introduction” written by William A. McEachern, he defined that demand is a relation between the price of the good and the quantity that buyer willingly to purchase per period with other factor is constant. As for supply, he defined that supply is a relation between price of the good and the quantity of the good that producer able to sell within a period of time with other factor remain constant ( McEachern, W.A., 2009). Demand and supply actually correlated with each other with the cost of the good become the main core of whether the increasing or decreasing of demand and supply trend. The demand and supply trend in one country may influence not only in commercial sector but also in construction industry.…show more content… Usually, if there is demand, there is also supply involved. The essential factor of the increasing and decreasing of demand and supply are normally depend on the price of the good. Hence, the law of demand and supply was created.
The law of demand is a principle where the price of a good and the quantity of the goods that the buyer are willing to buy relate with each other creating an inverse relationship (Gwartney, J.D., Stroup, L.R., Sobel, S.R., and Macpherson, D.A., 2009). This means that if the price of the good increases, thus the buyers purchase less of the product (refer figure 2.1.1 ). The availability of substitutes can causes the buyer to shift to another product that is cheaper but still give the same