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Economic and management sciences

Grade 9

The economic cycle

Module 5

Priece-fixing through supply and demand

Assessment standard 1.3:

Price-fixing through supply and demand

In order to make bartering and business transactions possible, it is necessary that the value of a product be expressed by the dealer in terms of a monetary amount, or as we know it, a price. It is common for us to walk into a shop and compare the prices of products on the shelves in order to decide which product(s) we want to buy. However, the question is: How are these prices determined?

The price that is given to a product by a dealer depends on (1) the price that he paid for the product and (2) the price at which he is prepared to sell the product. This raises the principle of DEMAND for a product or products at a specific price, in a specific quantity or number (of the product) and at a specific time. As a simple example one can refer to the municipal fresh produce market or an auction where livestock is sold. Note that at such markets the sellers and the prices that they ask for their products, as well as the number of products available, can differ from day to day.

The following data are given concerning the SUPPLY of cabbages on the municipal fresh produce market:

PRICE PER CABBAGE NUMBER SUPPLIED
R0.80 400
R0.70 350
R0.60 300
R0.50 200
R0.40 100

Activity 1: supply curve

Make use of the data supplied in the table above and draw the supply curve. Insert it on a separate page.

From this the LAW OF SUPPLY can be deduced, which states that “the number / quantity of goods that are offered will rise in proportion to rises, in the price and vice versa, namely that the number / quantity supplied will fall when the price shows a decline”.

Activity 2: supply

Draw up a list of the factors that will influence the number / quantity supplied.

1…………………………………………………… 6…………………………………………………..
2. 7.
3. 8.
4. 9.
5.

The price that a consumer is willing to pay for a product depends mainly on (1) how urgent his need is and (2) the amount of money that the consumer has available. Here we have to do with the DEMAND for a product or products that is / are valid at a specific price, in specific numbers / quantity and at a specific time. Once again it is possible that the indicated prices and numbers / amounts may differ from day to day.

The following data concerning the DEMAND for cabbage on the municipal fresh produce market on 14 January are also supplied:

PRICE PER CABBAGE NUMBER SUPPLIED
R0.80 150
R0.70 200
R0.60 300
R0.50 450
R0.40 650

Activity 3: demand curve

Make use of the data supplied in the table above and draw the demand curve. Insert it on a separate page.

From this the LAW OF DEMAND can be deduced, which states that “the number / quantity demanded will rise in proportion to the decline in price, and vice versa, namely that the number / quantity demanded will fall when the price shows an inclination to rise”.

Draw up a list of the factors that will influence the number / quantity demanded.

1…………………………………………………………… 6…………………………………………………
2. 7.
3. 8.
4. 9.
5.

Questions & Answers

what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
anyone know any internet site where one can find nanotechnology papers?
Damian Reply
research.net
kanaga
sciencedirect big data base
Ernesto
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
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Source:  OpenStax, Economic and management sciences grade 9. OpenStax CNX. Sep 15, 2009 Download for free at http://cnx.org/content/col11074/1.1
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