Supply and Demand

If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease

Supply and demand in the foreign-exchange market are determined by changes in many market variables, including relative price levels, real interest rates, productivity, product preferences, and perceptions of economic stability.

Supply and Demand is an economic model that describes how prices of commodities in an open competitive market naturally gravitate toward an equilibrium between the available supply for a commodity and the demand for that same commodity at any given time. In this model, supply is defined as the willingness of a producer to sell a commodity at a given price and terms, and demand is the willingness of a consumer to purchase that commodity at a given price and terms.

In principle, as supply increases, more of the commodity becomes available to consumers, and therefore the consumers have greater access to a wider range of sources of the commodity. In this circumstance, the commodity price falls. The commodity price can also fall when demand for that commodity weakens, forcing producers to "sweeten the deal" in order to attract buyers.

As supply decreases, price increases, because there is less of the commodity available on the market, and consumers must compete more aggressively with each other to purchase the same commodity. Price can also increase when demand increases, also creating increased competition for the commodity.

The supply and demand model seeks to identify and predict intersections between supply and demand curves, and thereby evaluate the current fair price for commodities, and to anticipate changes of the commodity prices.

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Well, say a company has a whole bunch of a certain type of product. They have plenty of "supply." But if they don't have that many customers to buy that product, then they don't have a lot of "demand." Therefore, in order for them to sell the product, they need to make it cheaper to get rid of it. And it works opposite too. If they have little of the "supply," and lots of "demand," they will increase the price, so they can make a better profit.

Companies needing employees will need to increase payWages will rise.

if price of input for any product good is influence by

Any potential producer of a product or a service needs first to determine the need for such goods. This is usually done through companies that do research by contacting either the public through surveys, or to specific companies that might require those services. They also inform you as to what other people or companies are also providing those services or goods, and if there is any available room in the market for a new comer. This then determines demand. This also determines the available supply to fill the demands. It is much like water always attempting to find equalibrium.

True

The theory says that the demand increases. this however is not necessarily true. in some instances the demand will also decrease when there is status involved. For example some people will not buy generic brands.

Point of equilibrium!

quantity of supplyis the equal to the constant plus demand times price

It's around 3.5!

When a company produces a small quantity of a product and a large number of people want to purchase the product, the demand will cause the price of the product to go up.

This question cannot be answered the way it is written. Please rephrase and resubmit your question so it can be answered. thank you

If the demand is perfectly elastic in prices (that is, demand falls to zero if the price for consumers is raised even the slightest bit), then the entire tax incidence falls on the producer since the producer would rather face the entire tax burden than lose all his consumers. And if the demand is perfectly inelastic (doesn't change with change in commodity price) then the entire burden falls on the consumers.

So higher the price elasticity of demand, higher would be the share of taxes borne by the producer. And higher the price elasticity of supply, lower the share borne by the producer, by similar logic.

Supply depends on demand.The demand is how much a product is wanted.The supply is how many of a certain product is made.It depends on demand because if a product is not getting enough demand, the supply will come to a stop or become very low.

This would be having exactly enough, but not too much of the product in demand. So you would be maximizing profit!

Imagine you wanted to buy a TV. You don't know how to make a TV so you must obtain one from someone who does know how to. Imagine also that you are a farmer and the person you are getting the TV from doesn't know how to grow vegatables. In this case you are both interdependent because with out you the electrical merchant couldn't eat and without the electrical merchant you wouldn't be able to get a TV. The same works for money; if you have £300 but no TV and someone else has a TV but wants money then you can trade.

The biggest force of supply and demand relates to price if there is a low supply and and a high demand , the supply goes to those that are willing to pay the most.

determinants of demand :
-income and wealth
-prices of other goods and services
-tastes and preferences
-expectations

determinants of supply :
-the cost of production
-the prices of related product