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Unformatted text preview: For example, the cost of a banana at a fruit stand or fresh market will be considerably lower than a banana being served at the Ritz Carlton or a from a luxury beach side cabana on a touristy resort. The law of supply and demand is that when the price is high then the demand will be low. On the other hand, when the price is low, the demand will be higher. Now when the quantity is low, the price will be higher and vice versa. When there is a high demand for something, the company will tend to want to raise prices so that they are able to make more money. If the demand is low, they will lower prices at times to get people to buy the product....
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This note was uploaded on 01/22/2011 for the course BUS 210 taught by Professor Scottrought during the Spring '08 term at University of Phoenix.
- Spring '08