Supply and Demand

The answer is from an economics point of view. You might need to draw a diagram to understand the question better. Let's say that the initial equilibrium price and quantity is stable, where the demand and supply curves intersect each other. Using the market for console games for relevance, let's say the price of Play Station 3 is initially priced at USD 3.00. (it's only an example, as I have no idea how much it costs). At this price, we can say that that is the equilibrium price of the PS3, and the equilibrium quantity is 1000 units. However the equilibrium price and quantity can change depending on changes in the supply and demand in the market, hence the question is asking how the interaction between demand and supply can determine the price and output. Let assume that the demand for PS3 increases, which can happen in real life during holiday season or before Christmas. If this happens, in a graph, the demand graph will shift out. An increase in the demand while the supply remains the same, means there is excess demand of PS3 in the market. This means there are a lot of people who want to buy the PS3 but there are too little in the market or insufficient amount supplied. If this happens, the price will increase. (this is very normal in economics, when there exists excess demand the value of the good increases). The increase in the price, will thus form the new equilibrium price and quantity. We can say that the excess demand caused the price of PS3 to increase, and only a few can purchase it. This is one example of the interaction of demand and supply to determine the equilibrium price and quantity. At times, it's not only the demand that can affect the price and quantity. There are times where the supply can affect the price of a good. If excess demand causes the price to increase, excess supply, meaning a surplus of goods in the market. will mean the price will eventually fall. What you need to understand is the use of demand and supply to determine the price and quantity is a model. This demand and supply model is used to basicly understand the relationship between price and quantity and factors that can affect it.

The price will skyrocket, increase, go up.

The point where supply and demand intersect is the equilibrium point. This is the point where quantity demanded and quantity supplied are equal.

Graph

The price elasticity of supply (or demand) is the percentage change in supply/demand for a one-percentage change in price. Eg, if the price elasticity is 1, a 1% change in the price of a good causes a 1% drop in price. (Note that elasticity is given in absolute value, since it is usually negative.)

1. How do supply and demand affect choices?

the higher the price, the larger the quantity produced

is that price and supply tend to follow demand. is that price and supply tend to follow demand.

no

Well it means that equilibrium is basically a dynamic process and it adjusts to the new situation where basic variables of the market has registered changes and the new endowment point becomes the need of the situation.

yes.

You think probable to the variable price of metal ores; technically a "volatile metal ore" doesn't exist.

the supply has to go down and the demand rise

A customer filled form of the following fields will be of great use. * Do you need product urgently? * How many times you visited our store? * Was the proper information provided to you? * Were you attended properly? * Can you afford to pay more for a quick delivery? * Have you ever used our product? * How do you know about our product?

yes it is the size of your house yes it is the size of your house

The demand or quantity demanded is the amount that consumers will purchase or consume at a specific price.

Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. Supply represents how much the market can offer.

Supply and demand intersect at an equilibrium point which determines the optimal quantity of whatever good and its price level. When the demand goes up, the price level increases and the quantity of goods increases as well. When the supply goes up, the price level goes down and the quantity of the good increases. It is easier to visualize this relationship by drawing the graph with a downward sloping demand curve intersecting an upward sloping supply curve.

(When drawn, it should resemble the letter "X")