Supply and Demand

it's not possible.

Well it should go up, say a xbox 360 costs £200 and there are 200 available and 200 orders prices should increase a little so it may cost £210 but if there is 200 orders but 150 360's the price will increase to the extent that who ever is willing to pay more will get one.

Conversely if there are 50 orders and 200 xboxes then the price should fall.
This is a simplification of course. There are other factors involved.

The brilliant thing is that no-one has that job. The buyers determine the demand, without colluding, and the sellers determine the supply. If they get it right, demand equals supply.

If demand exceeds supply, people have to queue up. People at the back might shout out that they will play a higher price, so they jump the queue and that drives the price goes up.

If supply exceeds demand, some sellers might shout out that they will sell more cheaply than the rest, and that drives the price down.

The price usually goes up. If lots of people want something, you have to pay more to get it.

If the price of gas keeps going up like it has been these past few months, that means one thing: we are running out of gas and demand will rise.

The willingness and ability of a producer affects supply because they activities determined availability of products on the market

Adam Smith, in his book The Wealth of Nations, laid out the relationship between supply and demand and how scarcity and abundance will cause the price of a commodity to go up or down.

its easy, when supply is increased, the price decreases. A decrease in price leads to an increase in demand. So technically supply creates its own demand.

Supply function is not what is available for supply, it is clearly defined as "what is the quantity of goods that suppliers are willing to supply at each price". So even if a supplier has ample stock it does not mean it is the supply of that product

. Technically supply is fixed by the producer or supplier who fixes it through their willingness. Thus supply is directly proportional to price. If price increases supply increases and vice versa. The logic behind this is if price goes up "having the cost of production at the same level" the profit margin increases. thus to earn more profit more quantity is supplied at high price and vice versa.

Thus generally speaking supply cannot create its own demand unless the good is a perishable one which the supplier cannot have more shelf life and it has to come to market causing the price to decrease effecting in high demand.

Price mechanism (A+)

just stop being so lazy, read your book or google it, and figure it out for yourself

Expectation elasticity of demand mean if in future the price will rise then in present the demand of that comm. will fall i.e elasticity will be +ve.. n vice versa..., RELATIONSHIP OF EXPECTION OF PRESE WITH THAT COMMODITY Expectations about future price rise or fall is directly related with present or a recent demand i.e if prise rise in future, the demand will rise 4 that comm. n vise versa....

The labor market will reach equilibrium as the amount of workers willing to work for a certain price equals the amount of workers employers are willing to hire for that wage. On a supply and demand curve the employees represent the suppl side while the employers represent the demand side

There is two types of increase for supply.

1) Movement along the demand curve (upwards or downwards) which is subjected to the shifting of the demand curve

2) Shift of the supply curve.

For the first case, the supply curve does not shift but there is increased production to meet the new market demand. Supply will increase as there is a upward movement along the supply curve, and until the new market equilibrium is achieved.

For the second case, Supply shifts right and hence the upward movement along the demand curve.

From 12th grade Economics, I can say that that point is called equilibrium. that is the point where both supply and demand's needs are met. If the point is above the supply and demand lines, It is inefficient and is only reached through new breakthroughs like technology, more workers, etc... and if the point is below where both lines meet, resources are being used inefficiently. Economics is the study of allocating scarce resources, after all.

i dont know and i dont care you dumbasses

Cross price elasticity of demand measures how much demand of one good, say x changes when the price of another good, say y changes, holding everything else constant.

For example, you can measure what happens to the demand of bread when the price of milk changes.

The cross price elasticity is calculated as the percentage change in the quantity demanded of good x divided by the percentage change in the price of good y.

If the cross price elasticity is negative, then we call such goods Complements (example: pizza and soft drinks -- they are consumed together).

If the cross price elasticity is positive, then we call such goods Substitutes (example: pizza and burgers -- you usually consume either or).

The income elasticity of demand measures the change in the quantity demanded of some good, when the income changes, holding everything else constant.

For example you can measure what happens to the demand for expensive red wine when income increases.

The income elasticity is calculated as the percentage change in the quantity demanded of the good divided by the percentage change in income.

If the income elasticity for a good is positive we call them normal goods. It can be between 0 and 1, and we call it income inelastic demand for goods such as food, clothing, newspaper. If it is above 1, we call it income elastic demand. Examples are the red wine, cruises, jewelry, art, etc.

If the income elasticity is negative, this means that as income increases, the quantity demanded for those goods actually decreases, we call those goods inferior goods. Examples are "Ramen noodles", cheap red wine, potatoes, rice. etc.

The price of the supplies get higher.

According to the law of supply and demand when supply increases, prices will decrease.

DEMAND- Demand means the quantity of a commodity or service that a consumer is willing to by at given price,place and time. There are three elements of demand:

1.price of a commodity

2. quantity demanded

3.a specific time and place

There are many types of demand,some of them are:

price demand,income demand,cross demand or joint demand,composite demand,individual demand,market demand,etc.

Law Of Demand: It explains the inverse relationship between the price and quantity demanded of a commodity. It states that other things remain constant,quantity demand of a commodity increases when its price declines and vice-versa. The other things which remain constant are income of consumers,price of relatedgoods,consumer taste and prefrences,etc.

Demand curve always slopes downward due to law of demand.

SUPPLY- Supply refers to the quantity of a commodity offered for sale at a given price,place[market] and time.

Elements of supply-

1.It is a desired quantity,how much the producers are willing to sell not howmuch they actually sells.

2.price

3.market

Law of Supply- It shows the direct relationship between price f a commodity andts supply. It statestht other things be equl,the supply of a commodity increases wih the increase in its price an vice-versa.

Determinants of supply are:

number of producers,taxes and subidies,natural factors,uture expectations regarding price.

The supply curve is upward sloping because of the law of supply.

Since netflix can be given to anyone, the "supply" is infinate. But the "demand" is what matters. If Netflix was doing very good, and lots of people want it, they have plenty of demand, so they can afford to lift the price. If not that many people would hook up with it, they would lower the price to get more customers.

Drug dealers acquire less drugs to sell. Maybe there is increased smuggling enforcement. Less drugs on the street. Assuming the same number of people want it the dealer can raise prices to people who want and can afford drugs the most. And those who want drugs only a little will be discouraged of the higher price and might move to a cheaper "high" like alcohol.

This is an interesting question! We've notified our experts in this category and we'll email you when there is a response.

In a market economy, the prices of goods and services are determined by the forces of supply and demand. The market structure in which supply and demand set prices is called perfect competition.

In perfect competition, there are a large number of buyers and sellers in the market, and each buyer and seller is a price taker. This means that each buyer and seller has limited ability to influence the market price, and must accept the current market price in order to participate in the market.

Another characteristics of perfect competition is that the products offered by different sellers are considered to be homogeneous, meaning they are all essentially the same.

In this type of market, the price will adjust to bring the quantity supplied and the quantity demanded into balance. When there is a shortage of a good, prices will rise and the quantity supplied will increase. When there is a surplus of a good, prices will fall and the quantity supplied will decrease.

It's worth noting that in reality, most markets deviate from the theoretical ideal of perfect competition. There are many markets, such as the retail, where large companies dominate and smaller players struggle to enter. These markets are called oligopoly or Monopoly, and the firms in these markets have more control over prices.

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