Demands and Supplies in Education and Government

The Law of Demand states that demand will increase as price goes down. There is a reverse relationship. The law of demand depends on the fact that other conditions do not change - all other factors remain the same (Hoffarth, 2007). Therefore, as the price of a product or service rises, demand for that product decreases and vice versa. The demand curve is a negative slope curve. Clearly, as commodity prices rise from price p3 to p2, demand will decline from the third quarter to the second quarter and then to the third quarter.

Supply: Influence of supply of raw materials and labor, logistics, high profitable production capacity, raw material competition, government support for changes in supply and demand, elasticity of demand, price sensitivity, price sensitivity Impact of global interaction: level and type of interdependence (Supply chain, corporate ownership, flow of capital and business operations, reduction of global business management ability by governments)

The relationship between the government that causes income disparity and the power of the market is that the government has the power to influence the supply and demand of labor in the Australian economy. By developing education, skills and experience standards, it affects labor supply and demand. For example, doctors are getting decent education, skills and experience that requires much time to work. This limits the supply of physicians and therefore increases the physician's demand for doctor's need in the Australian economy. Because of their high demand and the fact that this work involves higher level skills and longer training time, they earn higher income than usual. Labor supply will still have different income even if the government may try to slightly expand the supply of doctors by providing scholarship-like incentives.