DQ Describe the supply and demand of a market economy product

DQ Describe the supply and demand of a market economy product

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
// Please use this as a reference and compile your own answer with its help // Best  regards // // Honest Abe // Describe the supply and demand of a market economy product.  Demand for a product is inversely related to the price. When price increases, demand will  fall. When price falls, demand will increase. For example, when the price of a Big Mac  decreases, people will be less willing and able to purchase the product. Therefore, this will  decrease demand for the product.  There are many factors which can influence the demand of a product as well. An example of  a factor will be customer’s expectation of the future. For example, when a customer is  optimistic about the future for he predicts an increase in income, he will be more likely and  able to purchase a product like Big Mac. Therefore this will increase demand of the product.  Demand can also be influenced by changes in taste and preferences. For example, if a news 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/20/2010 for the course ANM 8739 taught by Professor Morgan during the Spring '10 term at Alabama A&M University.

Page1 / 2

DQ Describe the supply and demand of a market economy product

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online