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I don't know. Maybe if you get alittlehigh you wouldprobablyget the answer.
The law of supply and demand states that when the demand for an item or service is greater than the supply of that item or service, the price goes up, but when the supply of an item or service is greater than the demand for that item or service, the price for that item or service goes down. That is why scalpers can sell tickets to the World Series for more than the original price, since there are more people who want to attend (demand)than there are tickets (supply).
The law of supply and demand states that when the demand for an item or service is greater than the supply of that item or service, the price goes up, but when the supply of an item or service is greater than the demand for that item or service, the price for that item or service goes down. That is why scalpers can sell tickets to the World Series for more than the original price, since there are more people who want to attend (demand)than there are tickets (supply).
If OPEC reduced output, then world supply will fall. Thus, as supply falls, the price will rise, and the profits of oil-producing countries increase. (In a demand-and-supply graph, the supply curve will shift to the left and you'll see the change in price.)
If OPEC reduced output, then world supply will fall. Thus, as supply falls, the price will rise, and the profits of oil-producing countries increase. (In a demand-and-supply graph, the supply curve will shift to the left and you'll see the change in price.)
No, the opposite is true. Without free trade, i.e. with tariffs and trade restrictions, it's possible (and likely) for there to be an imbalance of supply and demand, leading to different prices at different locations. With free trade, imbalances in supply and demand will tend to even out, leveling the price to the extent that the cost of shipping allows.
It depends on what you are referring to. For something like wood, an exceptional demand would probably mean an want/need for wood like never seen before. If you are referring to somebody demanding something, an exceptional demand would probably mean one that is "crazy, out-of-this-world, drastic'.
As with anything the main driver of gold's price is supply and demand. If the supply is low or the demand is high then the price will go up. Now we have to throw in a third factor, speculation. Gold is sold and traded on the option market and there has been a great deal of gold options traded recently, and that has driven the price up also. If there were to be a large amount of gold either found or released on the world market then the supply would out strip the demand, options would no longer be sought after and prices would plummet. In 1972 an ounce of gold cost $58.42, that same ounce of gold today, 2013, is $1221.
Yes. Gold is a comodity that is traded in the markets like any other comodity. The recent rising price is a function of supply and demand. If for any reason demand for gold increased far beyond the ability to supply then the price would increase. Because gold is a finite natural resource, we've seen a surge in gold prices as world demand has risen. However, a price of $1000 per ounce would probably require a major problem with the supply line. Visit http://en.wikipedia.org/wiki/gold_as_an_investment for the latest information on gold, complete with graphs and images.
Economists would argue that a price ceiling will lead to demand outrunning supply, leading to a shortage of the product. Although a few "real world" examples back this up, there are no set in stone answers to such complex issues.
Food supply acts as a negative feedback on world population once there is scarcity. This happens when demand for food is high but its supply is low.
Production itself cannot have inelastic demand, only supply. I will look at both cases. The demand for rice as a good is very inelastic. This is because people will buy rice no matter the price, because in many places of the world, it is their main source of food. Recently rice as skyrocketed in price (resulting in riots in places), but people still buy it. This is mainly out of necessity, but alternatives are emerging. The elasticity of supply is also inelastic, as we are looking at a huge rise in prices, but a very small change in production.