Demand and supply are two main element of the micro economic that affect to each other. In the micro economics, the first factor as the demand shows the level of purchased goods and service over a time period.
In the simple words, demand depicts the ability of purchase of the customers group in the market for a particular product. In the same concern of this, the term supply in the micro economics shows the ability of the marketers in terms of how much product quantity they can deliver (Piros and Pinto, 2013).
There are various factors that affect the demand and supply in the micro economics environment.
For instance, typically in the market, it can be seen demand of a product influences due to changes in various factors such as incomes of customers, price of product, price of the related goods, changes in the quality and test of the customers etc.
In the similar manner, supply is also influenced by the various factors in the market including overall product cost of the product, changes in the technology and future price expectations in the market. This report is aim to examine the demand and supply of certain resources in Australia.
In order to achieve aim of this report, this report discusses the factors that have impact on the demand and supply. This report is important to understand the impact of the various factors on demand and supply of certain resource in Australia.
According to Harbury (2014), the term economy refers to area of production, trade, distribution and use of the good and service in the context of different geographical areas.
At the same time, the words of Salman, et al. (2011) determine that when in the market, price of a particular product increases and other element remain constant then the market demand of the product decreases. In oppose of this, when the price of a particular product decrease then the market demand of the product increases.
On the basis of this statement, it can be concluded that there is inverse relationship between price and demand of a product or resource in Australia. On the other hand, in the reference of supply,
when the price of particular resource or product increase and other element remain same, in this situation supply of the product increases in the market.It means that an increase in the price of the product leads to increase the graph o the supply.
On the basis of this, it can be determined that there is an accurate and positive relationship between the supply of the productand price of the product.
The above discussed economic principles apply certain resources of Australia. According to Gregory (2010), when in the market demand and supply both are move in a free manner then market is called equilibrium.
In this situation, the demand and supply of the resource are identified equal. Therefore, it can be stated that price of the product or resource is important to influence the demand and supply of the product without the any government influence.
[Source: Ferrell and Hartline, 2012]
The above are figure for demand curve, supply curve and market equilibrium. These figures are significant to understand demand, supply and market equilibrium situation in the
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