Market chart

Market model is a redirect to this article. For the Sharpe market model, see Alpha Factor or Capital Asset Pricing Model .

Origin of the equilibrium price, shown in the market diagram

The market diagram or price-quantity diagram is a microeconomic analysis tool . It illustrates the creation of a market price and a market quantity in market equilibrium . The market diagram was developed by Karl Heinrich Rau and Alfred Marshall .

construction

In a Cartesian coordinate system , the price (price axis) is plotted on the ordinate ( axis) and the quantity (quantity axis) is plotted on the abscissa ( axis). In the diagram itself there is a supply function (supply curve) and a demand function (demand curve), which correspond to the amount offered or requested. ${\displaystyle y}$ ${\displaystyle x}$

The point of intersection with the quantity axis is also called the saturation quantity , and that with the price axis is also called the prohibitive price .

At the point where the supply function and the demand function intersect, there is market equilibrium ; Here the market price resulting from supply and demand without government regulation and, analogously, the market volume can be read off.

In the market diagram, as is common in economics , the explanatory and explained axes are swapped, so the price determines the quantity and not the other way around (the quantity is a function of the price , i.e. ). ${\displaystyle x}$ ${\displaystyle y}$ ${\displaystyle x(y)}$

Individual evidence

1. ↑ Hal Varian: Fundamentals of Microeconomics. 8th edition. Oldenbourg Wissenschaftsverlag, Munich 2013
2. ↑ Ferry Stocker: Fun with Micro: Introduction to Microeconomics , Oldenbourg Wissensch.Vlg; ISBN 3486258532 , GoogleBook

Web links

Commons : Supply and Demand Curves in Market Charts  - Collection of Images, Videos and Audio Files

• The market diagram - article at mikrooekonomie.de