close
    how dows supply and demand work

    0  Views: 566 Answers: 1 Posted: 13 years ago

    1 Answer

    Supply and Demand from Wikipedia


    Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium of price and quantity.


    The four basic laws of supply and demand are:[1]


    If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantityIf demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.If demand remains unchanged and supply increases, then it leads to lower equilibrium price and higher quantity.If demand remains unchanged and supply decreases, then it leads to higher equilibrium price and lower quantity.


    Link > http://en.wikipedia.org/wiki/Supply_and_demand



    Top contributors in Uncategorized category

     
    ROMOS
    Answers: 18061 / Questions: 154
    Karma: 1102K
     
    Colleen
    Answers: 47269 / Questions: 115
    Karma: 953K
     
    country bumpkin
    Answers: 11322 / Questions: 160
    Karma: 838K
     
    Benthere
    Answers: 2392 / Questions: 30
    Karma: 760K
    > Top contributors chart
    494954
    questions
    730790
    answers
    830363
    users