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Why does supply and demand follow from the rules of economics?
Wiki User
∙ 14y ago
when supply is up and there is enough to go around, prices fall. When supply is down or limited prices go up because there isn't enough to go around.
Wiki User
∙ 14y ago
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What would propably happen to the value of bauxite if its supply suddenly increased and why?
According to the general rules of supply and demand, the value of any given commodity is inversely proportional to its availability. That is, the more readily available something is, the less valuable it tends to be.
Is there any relationship between ethics and economics?
Ethics is: a system of moral principles; a system of rules for regulating the actions and manners of people in society. Economics is: The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems. So, if you have good ethics, you'll have good economics.
Why are football tickets so high?
Football tickets are expensive because there is enough desire for them that people will pay a lot of money. If nobody was willing to pay that much, they'd be cheaper. That's one of the rules of supply and demand.
Does DirectTV have on Demand?
Yes DTV had on-demand tv, Its great!. I have my DTV DVR hooked up to my dsl service and download and watch many pay and free on-demand shows DTV Rules
How do you explain a Change in Demand?
The necessity factor.There are many different factors which can cause changes in supply and demandEconomic factors that lead to a new supply curveChange in costs of production - increased costs of production will lead to decrease in supply since it will cost more to supply the same amount as before.Change in level of technology - better technology can help businesses produce more quickly and at a higher quality with lower costs of production and so there will be an increase in supply.Change in price of other goods - if a business is selling more than one type of good, they may decide to switch their resources to selling more of the good that is profitable. By using resources to increase the quantity supplied of the other product, then this can lead to a decrease in supply of the original product.Non-economic factors that lead to a new supply curveEnvironmental factors - If a business is required to follow stricter environmental controls, this will increase the costs of production and decrease supply.Legal factors - Laws requiring firms to follow all rules and regulations will also increase costs of production and lead to decrease in supply.Political factors - Such as subsidies and sales tax can affect supply. A subsidy keeps costs of production low, so subsidising products increase supply. Sales tax are placed on products to discourage consumption and this decreases a business's revenue and so supply decreases.Trade restrictions - Such as tariffs. A tariff is a tax that is placed on imported goods to increase their price and make them less competitive in the market. An importer of foreign goods will have tariffs placed on their goods which will increase costs of production and so supply decreases.Factors that lead to a new demand curveIncome - If consumers have an increase in income, they will usually have an increase in demand for certain goods or services since they can now afford more. i.e. increase in income means increase in demand.Tastes and preferences - Fashions come and go and so changes in consumer tastes affect demands. The weather and seasons can also affect demand - there will usually be a decrease in demand for ice-cream in winter.Price of substitute goods - Substitute goods can be used in place of another good. So an increase in price for one good will lead to an increase in demand for the other. (Since the other good is now relatively cheaper)Price of complementary goods - Complementary goods are used in conjunction with another. So the increase in price of one will lead to a decrease in demand for the other. (since households cannot afford as much as before due to the increase in price)
What rules do you follow?
what rules did you have to follow rations ww2
What rules should the government have in economics?
inflation
Is it more important to be liked or to follow the rules?
follow the rules
Did New York have laws or rules to follow?
they had rules to follow but not laws
Is it right to say 'rules will follow'?
Yes, "Rules will follow." is correct.
Do the leaders follow the rules in Canada?
yes they have to follow there home rules
What is the future tense of They follow the rules?
The future tense is they will follow the rules.
Who should follow safety rules?
We follow safety rules for be safe.
Why do rules suck?
because people don't like to follow rules so they want to not follow them so that's why rules suck, there shoud be no rules because people would follow them if they werent there because people don't like to follow the rules. my fingers hurt.
What would propably happen to the value of bauxite if its supply suddenly increased and why?
According to the general rules of supply and demand, the value of any given commodity is inversely proportional to its availability. That is, the more readily available something is, the less valuable it tends to be.
Do they follow the rules of law in Australia?
some of the australians doesn follow the rules and they will be dead
What rules did the coat of arms have to follow?
Coats of arms generally follow the rules of Heraldry.
