Supply and Demand

How does Supply and Demand affect prices?


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2009-04-29 16:16:02
2009-04-29 16:16:02

If supply is greater then the demand then the price is lower but if the demand is higher then the supply then the price is higher due to rarity. :)

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In a free enterprise system, when supply is low and demand is high, prices are higher, but when supply is high and and demand is low, prices are lower.

The (market) prices affect supply and demand, not the other way around except if the supply and demand you're talking about are caused in another market than real estate.

lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices

Supply and demand are vital to consumers. If a product is in high demand the supply has to go up which can increase prices because of the demand. Prices end up going up because more has to be shipped and it would have to get to the location of demand in a certain time.

Prices will fall when the demand is much lower than the supply. When the supply is lower, there is greater demand, therefore, the prices will rise.

supply and demand set prices in this market structure

By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.

as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.

Supply shocks are unexpected events that suddenly change commodity or service prices. A demand side shocks affect demand in one or more countries and may include an unexpected change in interest rates. Supply side shocks affect prices and costs in countries and can include a construction or capital investment boom.

"When prices rise, demand drops and supply rises; but when price falls, demand rises and supply drops."

Supply and demand. Supply and demand determines the prices of goods and services in the market.

Lower prices create a larger demand. When the prices go up, the demand goes down.

Supply, demand, and refinery capacity, among many others.

The theory of supply and demand is that when supply are plentiful, they are typically more affordable and easier to find. When supply is low, demand and prices increase as a result.

price of a commodity, the higher the prices, the lower the demand if there is not a equiblirum condition between demand and supply then it affect commodity demand , inflation and income, and monopoly in some commodity in some area is also affect demand of commodity

It is supposed to be the optimal meeting of demand and supply. There is a high demand for fresh vegetables, which are flavorful and healthy. There is an equally high supply. Buyer and producer each meet their needs. Prices go up if supply is low, demand high. Prices go further down if supply is high, demand low.

According to the law of supply and demand when supply increases, prices will decrease.

Government regulation occurs when the government prevents prices from adjusting naturally to supply and demand.

Supply and demand set stock prices.

When demand is higher than supply prices are going up, at some level customers don't want to buy and sales are going down. When supply is higher than demand prices are going down, at some level demand is again higher than supply and prices are going up.

is that price and supply tend to follow demand. is that price and supply tend to follow demand.

1. How do supply and demand affect choices?

Supply and demand is an economics tool used graphically to demonstrate the relative effects on market price generated by the quantity of supply and the quantity of demand. Supply exceeding demand generally is shown, again graphically, to lower market price. On the other hand, demand exceeding demand generally results in a higher market price. Verbally, the supposition can be stated, "as supply increases, given that demand remains static, price will fall. as demand increases, while supply remains static, prices will rise. as supply decreases, while demand remains static, prices will rise. as demand decreases, while supply remains static, prices will fall.

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