Supply and Demand Flashcards
1
Q
What is supply Law?
A
Price goes up supply goes up
Because of this price goes down supply starts decreasing
2
Q
What is demand law?
A
Price goes up demand goes down
Price goes down demand goes up
3
Q
In supply & demand there are a few non-price related factors to beware of
A
Demand: trendy or not? Demographic
Supply: cost, no. of sellers, tech supply
Cost: If it takes too much time and money to do smth, it would be hard to increase production of products
No. of Sellers: Is there other sellers in the market selling the same product supply will go up and vice versa
Technology: If that makes it easier for a product to increase it will
Environments: If it is a good season supply will go up however if it is not optimal season supply will go down.
