asswhole
Scarcity
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asswhole
demand decreases and price will decrease.
prices decrease
Derived demand occurs when there is a change of customers' demand on particular product and produces have to buy new production equipment, which means that the change in consumer demand for a product affects demand for all firms involved in the production of that product. Joint demand has nothing to do with changing the production equipments. In this case, demand of the product depends on demand of its compliment. For example, demand on inc depends on demand on printers.
asswhole
asswhole
scarcity
demand decreases and price will decrease.
prices decrease
Derived demand occurs when there is a change of customers' demand on particular product and produces have to buy new production equipment, which means that the change in consumer demand for a product affects demand for all firms involved in the production of that product. Joint demand has nothing to do with changing the production equipments. In this case, demand of the product depends on demand of its compliment. For example, demand on inc depends on demand on printers.
Excess demand in an unregulated market will cause the price of a product to fall. True or False?
Market is made up of consumers where the element of product/service demand occurs. When the demand is generated suppliers have to fulfill the demand of the customers through the supply of product/service. In short demand and supply makes the market.
A shortage is when there is a LACK (not enough) of that particular resource/product/item. A surplus is when there is EXCESS, or too much of a resource/product/item.
This would be having exactly enough, but not too much of the product in demand. So basically you would be maximizing profit!
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.
Pull strategy occurs when the manufacturer tries to establish final-consumer demand and thus pull the product through the wholesalers and retailers.