C2 - ME

Market

It is a place where buyers and sellers meet to trade commodities

Demand

It is the schedule of quantities of goods or services at certain areas that buyers are willing to and able to buy at different prices.

Law of Demand

It states that as price increases, quantity demand will decrease ceteris paribus (assuming all factors are constant)

income , price of related goods and services , taste and preferences , expectation on future prices , changes in population

demand can be affected by :

Normal Goods

goods or services that have an increasing demand whenever income increases

Inferior goods

goods or services that are decreasing whenever income increases

Substitute Goods

goods that can replace another commodity in its absence.

Complementary goods

goods that go hand in hand with each other

Supply

It is the quantity of goods or services that sellers are willing or able to sell at different places

Law of Supply

t states that as price increases, quantity supply will increase ceteris paribus(assuming all factors is constant)