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Supply and Demand
Supply and Demand is an economic model that helps create a competitive market place. It consist of a set of four basic laws.
467 Questions
When there are simultaneous changes in demand and supply what happens?
changes in relative prices are the driving force in the market mechanism
Is supply and demand economics unfair?
In it's basic form, Supply meeting Demand to Set a Price is quite equitable.
How supply and demand affect prices of products and services?
Supply and demand influence market price in various ways. The best known way is when demand is high the price of supply tends to go up. When there is a large amount of supply and demand is low or normal the price of supply tends to go down.
What is the supply and demand for banquet hall?
Garden & Banquet halls seem to always be in demand with the wide variety of functions requiring space and amenities including wedding receptions, conventions, pageants, ceremonies and family reunions. People now a days are moving from Old Traditional method of organizing social function in Mandir's & Dharamshala to the garden, resorts and banquet halls. The garden facilities is more preferable by the people for social ceremonies such as birthday party, marriage anniversary, engagements, kitty Parties conferences, meetings and social get-together etc. Now a days this has been an issue of Prestige for the People. The gradual shift of people to such garden and change in tendancy, gives us a additional chance to serve the customer by providing them a well build Garden & banquet hall equipped with all type of required facilities, including proper lighting, ample space, proper serving facilities to the customer guests, ample amount of water facilities etc. These all supporting factor with proper infrastructure of the Garden give another reason to the customer to add there Happiness.
a good or a service
The demand-supply gap occurs when the quantity demanded by consumers does not equal the quantity supplied by producers, leading to shortages or surpluses in the market. Government intervention, such as price controls, subsidies, or regulations, can help correct this imbalance. For example, if prices are too high, a government might impose price ceilings to increase demand and reduce excess supply. Conversely, if prices are too low, subsidies can be provided to producers to encourage higher supply, thus addressing the gap and moving the market toward equilibrium.
Is currency that is pegged to another currency usually changed on a supply-and-demand basis?
Usually it is not changed as it is 'pegged'. However, it mey be altered in the value because of government action, often politically driven.
Does the law of supply and demand affects currency exchange rates?
Yes. Nominal exchange rates depend on the flow of the currency itself and its availability between countries. As currency is harder to get and in demand, its nominal asking rate increases and vice-versa. This was more important in the past (i.e.) 16-17th century Europeans looking for gold in the mercantilist system) than it is now.
Explain economics relating to law of supply and demand?
The Law of Supply is a rule stating that more will be offered for sale at high prices than at lower prices. The Law of Demand is a rule stating that more will be demanded at lower prices and and less at higher prices.
The Law of Demand states that there is inverse relation between the demand of the consumer and prices whenever the prices of the commodity increase the the demand for that commodity decrease that so why it is inverse relation between the demand and price of the given commodity.
(addition by matchman6)
This is correct - however the questions asks, explaineconomics relating to supply and demand.
I would say you cant explain economics relating to supply and demand, but you can explain a huge part of economics with it.
You must first remember that economics is the study of how resources are allocated under conditions of scarcity. Scarcity implies that there are not enough resources for all our wants, therefore decisions must be made by everyone.
This means that producers must decide how much (of a product) to produce, and consumers must decide how much (of a product) to consume.
The intersection of supply and demand determines the price that will satisfy both consumer and producer at a given level of quantity. This means it gives us the value of all goods, which can help us in determining the best way to allocate resources in the economy.
Hope that helps..
Can the Laws of Supply and Demand can be Repealed?
NO! they been trying for almost 6000 years and lost every time and no not even with "money".
ADDED: The so-called "LAW" of Supply and demand is a misnomer. It is NOT A LAW. It is a theory based on marketplace principles.
How do you set up a sales target?
1. Determine the area in which you will be selling your product
2. Determine the demand for your product in your projected sales area
3. Determine how much of the market a product similar to yours presently controls
4. Determine if there are reasons for clients to switch to your product.
5. Determine the difference between present supply and demand, and the potential switched over clients that might be available to you.
6. This is your total potential gross sales amount.
7. Determine how much of the gross sales volume you could support with your supplier, sales staff, amd similar considerations.
8. Your sales target would be the percentage of this potential serviceable demand you could supply in years one through ten. Assume sales would increase annually if your product is better, cheaper, better serviced etc.
Is law of supply and demand is always true discuss?
The law of supply and demand states that if more people are to buy stuff such as clothing and food then the prices will go up. This law was put into order when the United States won over California from the Spanish. The gold was discovered and many people from all across the country came to make money. However by the time they wanted to go back home, few had made any profit, most left with less than they came to California with. People didn't just come from the United States they also came from places like China and Peru, Mexico, Spain, and other countries.
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.
