CAT GD/PIs always exert a special focus on Economics. Many students are often quizzed on Inflation, Deflation, Demand and Supply. If you are an Accounts, Commerce or an Economics grad, this should be cake for you but in the fat chance that you are an Engineering graduate who does not follow Economics, man you are in knee deep with the sharks. This post humbly tries to explain the Basics of Supply and Demand.
Law of Demand
This is going to be a very simple concept (as this is a post on the Basics): The Price is inversely proportional to the Quantity Demanded. Please note that Demand and Quantity Demanded are two different things. Demand will be explained in the forthcoming posts.
The following is a table explaining the fluctuation of Quantity Demanded as Price increased. There is an accompanying graph as well. The product that is being spoken about is a mobile phone whose price kept on increasing because of various upgradations and newer versions. The price is in Rupees.
Law of Supply
The price of a product and the quantity supplied are going to have a direct variation. The table depicts a relationship between the price of a Power Bank and the quantity produced by the Mobile Companies. As one can observe, the company is making more to get the larger chunk of the market share. (which shall also be explained in forthcoming posts)
This is the first post and hence might not have been a great value add for many who are already reading up on Economics. Stay tuned for the next posts, which would have crisp explanations of advanced issues. Cheers!
Comments
write a comment