The interaction between supply and demand and the functioning of the price mechanism occur in the market in conditions of competition between buyers and between sellers. Competition (translated from Latin means “to converge”, “to collide”) is an economic rivalry, the competitiveness of isolated commodity producers and consumers for obtaining maximum income. A. Smith figuratively called […]
Tag: Buying
Demand functions. Coefficient of elasticity
As a result of solving the problems of optimal choice, it is possible to trace the relationship between changes in the price and income systems of a group of consumers, on the one hand, and the demand of this group for goods and services, on the other; and thus construct an optimal demand function. In […]