answersLogoWhite

0

Supply and demand are fundamental economic principles that determine the price and availability of goods and services in a market. When demand for a product exceeds supply, prices tend to rise, prompting businesses to increase production or innovate. Conversely, if supply surpasses demand, prices may drop, potentially leading to reduced profits and inventory challenges. Understanding these dynamics helps businesses make informed decisions about pricing, production levels, and market strategies.

User Avatar

AnswerBot

1mo ago

What else can I help you with?

Related Questions

What effects supply and demand?

Fluctuations in the price of goods. The affect of demand on price is directly proportional and supply's affect on price is indirectly proportional.


If people decided to have more children doest it affect to demand and supply?

If significant numbers of people decided to have more children, it may affect supply and demand. It would lead to more demand and less supply.


How does supply and demand affect the market structure?

businesses can charge more if supply is limited and demand is high


How the increase in expansion affect the demand?

Increase in expansion affect the demand because more supply/expansion with constant demand will lead to excess in expansion which affect the demand.


A graph example of supply increase without changes in demand?

If a seller increase supply without changes in demand, his business will not last. He will have more supply than demand.


Should you think about supply and demand when considering your future career?

1. How do supply and demand affect choices?


What is the change in business environment?

Negative changes in a business environment would be such factors that affect supply and demand like severe weather, a bad supply line, cunsumer decline/disinterest, inflation, and so on. The affects can also be positive like a corperate expansion, cheaper supply lines, and more consumer demand. All in all, it's anything that affects your flow of business.


What are the factors affecting Demand and supply of goods?

price is the main factor which affect demand and supply and other factors which affect demand and supply are change in income weather change living standard of people alternative things superior to inferior


Can factors that effect demand also affect supply?

no


What factors affect demand and supply in health care?

please give me the ans. of factor affecting demand and supply of health


How do supply and demand laws affect holiday gifts?

The demand and supply law plays a crucial role in the pricing of these products based on popular demand.


What factor affect price?

What factors usually affect pricing?