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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.
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What are the Structures of collusive oligopoly with diagrams?
Collusive oligopoly occurs when firms in an oligopoly collaborate to set prices or output levels to maximize joint profits, rather than competing against each other. Common structures include cartels, where firms formally agree on prices and production quotas, and price leadership, where one firm sets a price that others follow. Diagrams typically illustrate demand and cost curves, showing the equilibrium at higher prices and lower outputs compared to competitive markets. The key feature is the reduced competition leading to increased profits for the colluding firms.
What happens if the the supply of vegetables is reduced to half of the demand?
If the supply of vegetables is reduced to half of the demand, it will likely lead to a significant increase in prices due to the scarcity of the product. Consumers may face shortages, prompting them to seek alternatives or reduce their consumption of vegetables. This imbalance can also create opportunities for suppliers who can meet the demand, potentially leading to increased competition and innovation in the market. Ultimately, the market will adjust over time as prices rise and supply chains respond to the new conditions.
What kind of relationship does demand have with prices?
the relationship demand has with prices is that when the demand for a product is high the prices go high as well, like gas and food....
What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
What are the Structures of collusive oligopoly with diagrams?
Collusive oligopoly occurs when firms in an oligopoly collaborate to set prices or output levels to maximize joint profits, rather than competing against each other. Common structures include cartels, where firms formally agree on prices and production quotas, and price leadership, where one firm sets a price that others follow. Diagrams typically illustrate demand and cost curves, showing the equilibrium at higher prices and lower outputs compared to competitive markets. The key feature is the reduced competition leading to increased profits for the colluding firms.
What happens if the the supply of vegetables is reduced to half of the demand?
If the supply of vegetables is reduced to half of the demand, it will likely lead to a significant increase in prices due to the scarcity of the product. Consumers may face shortages, prompting them to seek alternatives or reduce their consumption of vegetables. This imbalance can also create opportunities for suppliers who can meet the demand, potentially leading to increased competition and innovation in the market. Ultimately, the market will adjust over time as prices rise and supply chains respond to the new conditions.
What kind of relationship does demand have with prices?
the relationship demand has with prices is that when the demand for a product is high the prices go high as well, like gas and food....
What does an increase in supply of an item usually mean for a consumer?
lots of supply and low demand = lower prices lots of demand and low supply = higher prices demand and supply high = normal prices demand and supply low = normal prices
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.
Explain the process of supply and demand and how prices rise and fall?
Prices will fall when the demand is much lower than the supply. When the supply is lower, there is greater demand, therefore, the prices will rise.
Which situation best illustrate the concept excess demand?
Currently, due to rumors of gun control legislation, there is an excess demand for high capacity magazines. You can see the results of excess demand by searching for high capacity magazines for sale. Every venue that offers them for sale has nothing in stock. Places that do have them in stock are asking extraordinary prices for them. Therefore, the example of excess demand of high capacity magazines illustrates that excess demand causes scarcity of product and inflation of price. Conversely, excess supply will likely cause decreased prices.
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
How is today's gold prices increase or decrease?
as with any product, prices will fluctuate with demand and supply. if the demand increases or supply is reduced, prices will rise. if demand falls or there surplus supply, the opposite also occurs.
How does the interaction between supply and demand determine prices in a market?
The interaction between supply and demand in a market determines prices. When demand for a product is high and supply is low, prices tend to increase. Conversely, when supply is high and demand is low, prices tend to decrease. This balance between supply and demand helps establish the market price for a product or service.
Surplus drives market prices up storage drives them down?
Surplus occurs when the supply of a product exceeds demand, leading to excess inventory and prompting sellers to lower prices to stimulate sales. Conversely, storage can lead to a decrease in market prices, as an accumulation of goods may signal a lack of consumer interest or demand. Both dynamics illustrate how supply and demand interact to influence market pricing, with surpluses pushing prices down and storage levels affecting them as well. Ultimately, understanding these factors is crucial for businesses to make informed pricing and inventory decisions.
How may changes in prices affect the demand for a good?
Price and demand of a good have inverse relationship. An increase in the prices of a good will lead to fall in the demand of a good and viceversa.
