Cost and the factors influencing it
Cost is the monetary value of a product or service that has been incurred in the production of the product or delivery of services. Factors that influence costs include; the cost of raw materials, interest rates, transport costs, labor productivity, exchange rates, labor costs, and tax rates set by the government. A shift in the named factors has an impact on the cost of producing goods and delivering services.
Demand and supply curves
Demand curves are graphical illustrations of how the demand changes based on changes in prices while supply curves illustrate how the supply changes based on changes in prices. Equilibrium price shows the price at which the supply is equal to the demand. A surplus in economics reflects the number of products or services that exceed the amount consumed or utilized by clients. A shortage in economics is where the demand exceeds the supply in the market.