We'll tackle this problem one by one. let's start with substitutes.
Substitute goods are goods that are able to be interchangeable i.e. if you don't have A, you can still use B
Teas and coffees
Imagine, that at the starting place, both of these goods are sold at price P.
However, due to a good harvest year, coffee price was able to decrease (since coffee bean prices decreased), to P1 lower than P.
This, in effect means that people will switch from Teas to coffee (due to cheaper price), and thus, increasing the quantity supplied and demanded of coffee while decreasing the quantity supplied and demanded of tea
Onto complements.
Compliments goods are goods that are normally used together for example, Computers and Windows.
Imagine then, what would happen if the demand of Windows increase? To run windows, people need a computer. Therefore, if the demand of Windows increase, the demand of Computers would in return, also increase. And if people demand less Windows, they would also demand less computers (although you can argue they switch to Mac or Linux!) Much the same with supply, if they supply less computers, the supply level of Windows must also go down to not have excess software in the market. If they produce less windows, less computers need to be produced for the same reason!
Determinats of demand * Income * Taste or Preference * Prices of substitutes or complements * Expectations of the future * Population Determinants of Supply * Technology * Factor prices * The number of Suppliers * Expectations of the future * Environmental conditions
use a demand and supply diagram to illustrate the effect of a subsidy.
In the law of supply and demand the effect on the Labor Market is that labor is a commodity.Labor is a commodity
no
supply and demand
Determinats of demand * Income * Taste or Preference * Prices of substitutes or complements * Expectations of the future * Population Determinants of Supply * Technology * Factor prices * The number of Suppliers * Expectations of the future * Environmental conditions
There wouldn't be a great demand for the commodity as, lower ther the prices, more the demand of the commodity.Remember, Demand for a product increases when the prices of its complements decreaseANSWER: Supply and demand
use a demand and supply diagram to illustrate the effect of a subsidy.
In the law of supply and demand the effect on the Labor Market is that labor is a commodity.Labor is a commodity
supply and demand
no
there will be no change in price because as demand will increase supply will also increase.
Hoe did supply and demand affect the price of cattle
It doesn't have a direct effect on demand... if suddenly there were less toothpaste at the grocery store, the demand would remain the same. If the supply gets too low to meet the demand, the price will go up, and if the price goes up, that might have an effect on demand... some people will use other options besides toothpaste.
Increase in supply in the face of steady demand will result in lower price.
If there is an increase in demand, there will be increase in the price of the product if the supply remains the same. But if the manufacturer or supplier is able to supply increased quantity of product there will be no major effect.
yes