Civil Monsef
Presentation in
Market
Mechanism
Under supervision
DR/EN/FAYSAL Abou El-Azm
Dr/EN/Basma Kasem
Prepared by
ENG/ELSAYED GAMAL ABD ELMONSEF
Table of contents
Demand Supply Demand
The Market diffined diffined
Mechanism & & And
Demand
Model
Supply Model Supply
With examples in construction
industry
The Market
mechanism
From last digram to
study market
mechanism we want to
study
Demand
Supply
Demand & Supply
Demand
Demand Demand
diffined Model
The amount of a good or The model of demand is an
service wants to buy ¥ attempt to explain the
and is able to buy per amount demanded of any
unit time good or service
Precisions
Clarity
demand curves are negatively sloped
ADemand curve of wood market
The price of
wood/m3
High Value
(A) Use Only
Wooden wrenches Wood heating
(B) (D) (A)(B)
(A)(B)
(C)(D)
Quantity of wood
furniture Wooden tableau
(A) (C)
The model of demand
Demand Standard Model :-
1 Income Body
A Normal goods B Inferior goods
When an increase When an increase Introduction
in income causes in income causes a
an increase in decrease in
demand demand
Conclusion
2 Other good prices
An increase of Ready Mixed Concrete , a
substitutes of Site concrete , Causes an
Substitutes : two goods are substitutes if Body
increase in demand of Site concrete
Site concrete
An increase in An increase in price
Introduction
the price of one the demand for
of them s e d the other
Cau
Conclusion
Market of site concrete
2 Other good prices
Body
Complements : two goods are complements if An increase of the price of cement , Causes
a decrease in demand of Site concrete
concrete
price
Introduction
An increase in A Decrease in
the price of one
s e d the demand for
of them Ca u the other
Conclusion
Market of concrete
Supply
Supply
diffined The dependant variable is the
The amount of a good quantity supplief
or service a firm wants
to sell , and is able to sell per The independant variable is the
unit time goods own price
Supply
Model
The model of Supply is an
attempt to explain the
amount Supplied of any
good or service
Law of supply
Supply curves are positively sloped
A Supply Curve Steel Market
Steel ton price
Sym Name
Proudction
Price/ton
EZ Ezz st 40000 EGP
50000 STK BRC
Nps-EGS Egyptain st 38000 EGP BS NS
Long Report EZZ
Bs Beshai 35000 EGP
45000
BRC BS
STK NS
NS Garhy st 32000 EGP 40000 Quantity
NS SKT BRC ton/day
BRC Chinese st 31000 EGP 35000
3000 ton
2500 ton
2000 ton
1000ton
SKT Turkey St 30000 EGP
Supply standard model
The independent variables
Input Prices
Technology The budget
Taxes and Subsidies
Good effect
Bad effect
The dependent variable is
the amount supplies
Supply decrease Supply increase
Unit Price
Change in input price
Consider the supply of concrete and
suppose the price of cement fall Supply @ cement
price=2500EGP/ton
Supply @ cement
price=2000EGP/ton
Concrete Market
Changes in technology
An improvement in technology makes
it possible to produce a level of output Supply @ non using
with lower cost than before concrete additives
Supply @ using
concrete additives
Concrete Market
Concrete additives
Taxes and Subsidies
Because this lowers the cost the highest cost of production
of production profits rise and profits drop down and firm will
firm will try to supply supply less
Demand and Supply
The equilibrium price of a good is
The equilibrium of a good is :-
Demand (Qd) = Supply (Qs)
A price at which quantity
supplied equal quantity
demanded
The equilibrium quantity of a
good is :-
The associated quantity with
the equilibrium price
Excess demand Excess supply
Demand (Qd) > Supply (Qs) Supply (Qs) > Demand (Qd)
The market mechanism is make The market mechanism is make
A BID A Sale
To achieve the equilibrium price
CIVIL MONSEF
Thank You
For Your Attention
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