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A lack of product (a.k.a. a shortage) would primarily cause an increase in the price of the good or service. An increased price means more supply, but it also means less demand.
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How does supply and demand affect consumers?
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.
What is supply and demand economy?
Supply is how much of the product an economy has. The demand is how much the people need the product. These two make the price. Let's say the supply is high and demand is low, the price would be low. If it was the other way around, price would be higher.
What are the factors that causes a shift in the demand and supply curve?
That would depend on the product your talking about.Fuel prices are a huge factor in almost everything as well as the overall health of the economy in general.Competition would be another thing that would affect supply and demand as well as availability of said product or the components to create it.The question is too vauge to really answer it properly.
Does Supply lead to Demand or does Demand lead to Supply?
It occurs both ways. I must say supply leading to demand 15-20% and demand leading to supply 80% Initially when a product is launched, because of supply some customers may opt to buy it. But all further sales would happen only when there is a demand for the product. Only when there is a demand for a product, the shop owners would buy them, the stockists would sell them and the manufacturers would make them. Let us say you want to open a company that manufactures Tooth paste. Assuming you live in a country where people do not brush at all, would you still want to manufacture it? Even if you do, there would '0' demand for your item. So, you may not manufacture it at all... So in any economy, demand drives the supply in nearly 80% or more cases.
What is the term for the point at which supply and demand are exacly equal?
This would be having exactly enough, but not too much of the product in demand. So you would be maximizing profit!
How does supply and demand affect consumers?
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.
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.
What is supply and demand economy?
Supply is how much of the product an economy has. The demand is how much the people need the product. These two make the price. Let's say the supply is high and demand is low, the price would be low. If it was the other way around, price would be higher.
What is a reason that prices of a product would go down?
Supply and demand. Economics.
What are the factors that causes a shift in the demand and supply curve?
That would depend on the product your talking about.Fuel prices are a huge factor in almost everything as well as the overall health of the economy in general.Competition would be another thing that would affect supply and demand as well as availability of said product or the components to create it.The question is too vauge to really answer it properly.
Does Supply lead to Demand or does Demand lead to Supply?
It occurs both ways. I must say supply leading to demand 15-20% and demand leading to supply 80% Initially when a product is launched, because of supply some customers may opt to buy it. But all further sales would happen only when there is a demand for the product. Only when there is a demand for a product, the shop owners would buy them, the stockists would sell them and the manufacturers would make them. Let us say you want to open a company that manufactures Tooth paste. Assuming you live in a country where people do not brush at all, would you still want to manufacture it? Even if you do, there would '0' demand for your item. So, you may not manufacture it at all... So in any economy, demand drives the supply in nearly 80% or more cases.
What occurs when supply and demand are equal?
This would be having exactly enough, but not too much of the product in demand. So basically you would be maximizing profit!
What is the term for the point at which supply and demand are exacly equal?
This would be having exactly enough, but not too much of the product in demand. So you would be maximizing profit!
How do the laws of supply and demand affect baseball players salaries?
Salary is contingent on the economics of "everything Baseball" from the price of Hot Dogs to how many people buy tickets. The supply and demand of these consumer products would affect a player's salary.
Illustrate what happens supply and demand equilibrium if there is both a decrease in supply and no change in demand and what factors could generate this scenario?
A decrease in supply with no change in demand would result in higher prices, as well as a possibility of extra-legal sourcing of the product. An example of this occurred during Prohibition in the United States with alcoholic products.
What is perfect elastic of demand?
A good's demand is considered perfectly inelastic when that good's demand does not change, no matter the price set. No matter how big or small the price change is. I would pay any price for air.
How would you classified the Starbucks product using the marketing consideration?
I guess it depends on demand and supply! ... simple equation ...More demand, less supply = High Price, and vice verse
