Week 1 DQ 1 Answer - However, there are those times of the...

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Your friend has asked you why the price of bananas is higher during certain times of the year. Using what you have learned about the laws of supply and demand, explain to your friend how the market affects price. There is a growing season for bananas and during this growing season bananas are plentiful in which there is a higher supply of them. Therefore, in this season (growing season) where there is an excessive amount of bananas available they can be sold at cheaper prices; and during this time of the year when the prices are reasonable people tend to purchase more bananas. On the other hand, people may buy more due to lower prices but the demand in this season is not high.
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Unformatted text preview: However, there are those times of the year (non-growing seasons) when the quality and quantity of bananas are in great demand, but the supply of fruit is low; this is when you see a rise in the price of bananas. When this happens although the supplier may increase the prices due to not enough supply to accommodate the demand; they still manage to find a way that equates to what people are willing to spend for the supply of bananas made available during that particular season. The laws of supply and demand are, when the prices are low consumers will buy, but when the prices increase consumers are less likely to purchase....
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This note was uploaded on 03/12/2012 for the course BUS 210 210 taught by Professor N/a during the Spring '09 term at University of Phoenix.

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