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Determinants of demand include consumer preferences, income levels, prices of related goods (substitutes and complements), future expectations, and the number of buyers. An increase in consumer income generally raises demand for normal goods, while a decrease raises demand for inferior goods. On the supply side, determinants include production costs, technology, number of sellers, government policies (taxes and subsidies), and future expectations. Changes in these factors can shift the supply curve, impacting the overall market equilibrium.
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Why do the prices of fresh vegetables fall when they are in season and draw supply and demand diagrams to illustrate?
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.
Why does law of demand and law of supply conflict with each other?
It's the law of supply and demand, as described by Adam Smith in his book "The Wealth Of Nations". Just one law, no conflict.
What happens to the price if supply increases?
If the cost of supply falls for each unit of supply (a shift of the supply curve right), the change in price depends on the price elasticity of demand: Price is unchanged when price elasticity of demand is infinite. Price falls when price elasticity of demand is less than infinite.
What shows the quantites of products demanded at each price by all consumers in a market?
supply and demand
Difference between demand and supply and what causes each?
The words are just what they say. Demand is how much desire consumers have for a product or service. Supply is how much of a product or service is available. When demand is great and supply is low the price of a product or service increases. When demand is low and supply is great, the price of a product or service decreases. The effect on price is the quantification of supply and demand. Demand in many instances is driven by disposable income and free time. Henry Ford recognized this in increasing the wages of his workers and decreasing their work time. See the related link below.
Is the price of a good the strongest determinant of its demand?
No - look at the example of motor fuel. No. The price of a good is not a determinant of demand at all. The price of a good determines the quantity demanded, not the demand. "The demand" is a curve showing the quantity demanded at each price. If price changes, you simply move up or down the line. The "Demand" does not change, because you are still on the same line. The strongest determinant of demand is probably the consumer(s)' taste and preferences.
Why do the prices of fresh vegetables fall when they are in season and draw supply and demand diagrams to illustrate?
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.
Why does law of demand and law of supply conflict with each other?
It's the law of supply and demand, as described by Adam Smith in his book "The Wealth Of Nations". Just one law, no conflict.
What happens to the price if supply increases?
If the cost of supply falls for each unit of supply (a shift of the supply curve right), the change in price depends on the price elasticity of demand: Price is unchanged when price elasticity of demand is infinite. Price falls when price elasticity of demand is less than infinite.
What shows the quantites of products demanded at each price by all consumers in a market?
supply and demand
What is a Equilibrium in a market?
The state in which real estate market supply and demand balance each other and, as a result, prices become stable. Generally, when there is too much supply for goods or services, the price goes down, which results in higher demand. The balancing effect of supply and demand results in a state of equilibrium.
What we called suppliers distributors and customers partner with each other to improve the performance of entire system they are participating in a 1.supply 2.supply and demand chain 3.demand chain?
value delivery network
Difference between demand and supply and what causes each?
The words are just what they say. Demand is how much desire consumers have for a product or service. Supply is how much of a product or service is available. When demand is great and supply is low the price of a product or service increases. When demand is low and supply is great, the price of a product or service decreases. The effect on price is the quantification of supply and demand. Demand in many instances is driven by disposable income and free time. Henry Ford recognized this in increasing the wages of his workers and decreasing their work time. See the related link below.
What is equilibrium in a real estate market?
The state in which real estate market supply and demand balance each other and, as a result, prices become stable. Generally, when there is too much supply for goods or services, the price goes down, which results in higher demand. The balancing effect of supply and demand results in a state of equilibrium.
When will supply decrease to the left n a supply and demand graph?
Supply will decrease to the left on a supply and demand graph when there is a reduction in the quantity of goods that producers are willing and able to sell at various prices. This can occur due to factors such as increased production costs, supply chain disruptions, or changes in regulations. As a result, the supply curve shifts leftward, indicating a lower quantity supplied at each price level.
Difference between transportation and assignment problem?
Total supply must equal to total demand in the transportation problem,but each supply and demand value is 1 in the assignment problem.
What is the definition of compliments and substitutes in econ?
In economics, complements are goods that are consumed together, meaning that an increase in the price of one leads to a decrease in the demand for the other (e.g., coffee and sugar). Substitutes, on the other hand, are goods that can replace each other; an increase in the price of one leads to an increase in demand for the other (e.g., butter and margarine). These relationships help explain consumer behavior and the dynamics of supply and demand in markets.
