Economics Supply Demand remediation.docx

Economics Supply Demand remediation.docx - World Geography...

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World Geography How to Answer Supply/Demand Questions Supply Refers to the amount of a product that is available for sale Demand refers to how much customers are willing to pay for the product (how badly do people want the product) If the supply of the product is low and the demand for the product is high….the price of the product will go up. This happens because the supply is limited, but people really want the product. The vendor knows that the limited supply gives him/her power to raise the price (because customers will be unable to find the product elsewhere). As a result, the vendor raises the price because he/she knows people are willing to pay more for the product. If the supply of a product is high, but the demand is low…the price of the product will go down. This happens because people are unwilling to pay much for the product and the vendor has a lot of products that they need to sell. As a result, the vendor will lower the price hoping that the lower price will encourage more people to buy the product.
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  • Fall '16
  • Supply And Demand, Video game console, Billy, Nintendo, Nintendo Entertainment System

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