Analyzing number of event that influences market
How can we analyze the number of event that influences the market?
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To analyze how many event influences the market, we simply use the supply-and-demand diagram to observe how the event influences equilibrium price and quantity. To do this we pursue three steps. At First, we decide whether the event shifts the supply curve or the demand curve or both. Secondly, we decide in which direction the curve shifts. Thirdly, we compare the latest equilibrium with preliminary equilibrium.
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In the figure shown below, line T0 depicts a tax system which is: (1) Progressive. (2) Regressive. (3) Proportional. (4) Unbiased. (5) Recessive. Q : In which of these two statements "In corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand."
"In corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in response to changes in supply and demand."
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