Turudünaamika

Turudünaamika refers to the study of how prices and quantities of goods and services are determined in a market economy. It examines the forces of supply and demand and how they interact to reach an equilibrium point. When supply exceeds demand, prices tend to fall, while an excess of demand over supply generally leads to rising prices. This continuous interplay shapes market outcomes and influences the allocation of resources.

Key components of turudünaamika include understanding price elasticity, which measures the responsiveness of quantity demanded or supplied to changes in price. High elasticity suggests that small price changes can lead to significant shifts in quantity, whereas low elasticity indicates less sensitivity. Factors influencing supply and demand, such as consumer preferences, income levels, production costs, technology, and government policies, are also central to this field.

The concept of market equilibrium is a core tenet, representing the point where the quantity of a good or service that buyers are willing and able to purchase perfectly matches the quantity that sellers are willing and able to offer at a specific price. Deviations from equilibrium create shortages or surpluses, prompting market adjustments that drive prices and quantities back towards this balance. Turudünaamika helps explain phenomena like inflation, recessions, and the success or failure of different products and industries.