What does supply and demand effect?

Answer 1

There is no way supply and demand affect disasters, they are natural things in nature while supply and demand are economic processes. Disasters can easily decrease the supply of something, which increases the price on that good.

Answer 2

When a lot of consumers want the same product, the supplier will raise the price of the product as it becomes scarce, or the supplier might lower the price (when it is not scarce.) It depends.

Answer 3

Demand and supply greatly determines the prices of things and what is sold.

If lots of people want a certain item, the producers will make more and make them more expensive.

So, say you want an iPhone.

Since so many people want them, they produce a lot and they sell for quite a bit.

But, if buyers don't want a certain item, the producers will make less and sell them cheaper.

If people stopped wanting iPhones, the producers would stop making so many and they would start to sell a lot cheaper.

Because of this, it greatly affects the decisions of the economy by controlling what we buy and how much we buy it for. The more popular, the more expensive.

Answer 4

it can make the value of the economy go either up or down

Answer 5

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