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Go Back   Freemason Hirams Travels Masonic Forums > Social Science > Economics

Economics Economics

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Old 03-27-2008, 02:32 PM
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Economics help: supply and demand?

I'm in an introductory economics course, and I'm having trouble understanding supply and demand with regard to imports and exports. I have two specific questions that I am especially having trouble grasping:

1.) If there is an inward shift in domesic demand for a good that is exported, what will happen to the total amount of the good that is produced by domestic producers? (will it decrease, increase, remain the same...)

AND

2.) If there is an inward shift in domestic supply for a good that is imported, what will happen to the total amount of the good that is consumed domestically? (will it decrease, increase, remain the same...)

I appreciate any help that you can give me!
Thank you!
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Old 03-27-2008, 02:32 PM
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Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.
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Old 03-27-2008, 02:32 PM
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Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.
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