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supply and demand effects the market economy and commodity prices. with a increase in demand commodity price increases resulting in inflation in economy and viceversa, and with increase in supply by producers there is decrease in commodity price resulting in deflation in economy.
The supply side deals with relationship between the price and the quantity. The demand side deals with the volumes that buyers are willing to purchase at various prices
if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.
demand = how much people want it quantity (supply) = how much you have/can sell When the demand drops, the supply increases, and when the supply increases, the demand drops, but it will turn around again, and when the supply is low, the demand increases, and when the demand increases, and the supply gets lower.
Excess demand (a seller's market) means the product is in short supply and prices will rise. Excess supply (buyer's market) means too much product as compared to demand and therefore prices will fall.
Supply is the amount produced and demand is the amount that is wanted.
supply and demand effects the market economy and commodity prices. with a increase in demand commodity price increases resulting in inflation in economy and viceversa, and with increase in supply by producers there is decrease in commodity price resulting in deflation in economy.
The supply side deals with relationship between the price and the quantity. The demand side deals with the volumes that buyers are willing to purchase at various prices
Because of forex market and demand & supply
THE ANSWER IS IN YOUR BRAIN ! you people are reaaly dumb
if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.
demand = how much people want it quantity (supply) = how much you have/can sell When the demand drops, the supply increases, and when the supply increases, the demand drops, but it will turn around again, and when the supply is low, the demand increases, and when the demand increases, and the supply gets lower.
Its the difference between the demand price and the supply price at the quota limit .
Excess demand (a seller's market) means the product is in short supply and prices will rise. Excess supply (buyer's market) means too much product as compared to demand and therefore prices will fall.
an increase in which exceeds the supply
not enough people were buying them. the demand was less than the supply. In order to not loose money they needed to reinvent it or drop it. Schecter chose to drop it. Its simple supply and demand equation for all businesses. More Supply + Less Demand= deflation of prices (in the end less money for company) More Demand + Less Supply= inflation of prices (in the end more money for company)
when the supply of a commodity increases but demand remains constant then price of the commodity falls which is called deflation with the result unemployment rises.on the other hand if supply rises and if demand also rises with same rate then this would have positive effect on the economy as the employment rises with out inflation.