Question

Recognize how changes in supply and demand affect market outcomes and explain the effect of government regulation on prices?

Plese write your own words not copy from other resources

Regards

Answer 1

Demand and supply is a price determining economic model in market outcomes.

. supply and demand equals at the settle point of market. Wheen the supply remains unchanged and supply increases then equilibrium price become higher and vice versa. And when the customer clearly knows all information and price of a commodity becomes higher then demand of the product decreases. For the pricing of goods and services for demand considered pricing it focus on the natures demand curve.

* When supply is unchanged and demand increases then quantity and equilibrium prices is high

* when supply is unchanged and demand decreases then quantity and equilibrium price bee lower

* when demand is unchanged and supply increases then quantity will be higher but lower the equilibrium price.

* And when demand is constant with decrease in supply then quantity is lower with higher the equilibrium price.

Merket outcomes havee a signifficant role in changes of supply and demand.Market economies worrks in accorrdancce with the supply and demand. Price aandd thee qquantity of goods and services are determined by demand ans supply..  Demand will decrease us customer awaare of producut eehccicch plprice is increasing.

Prices of goods and services will affected by government regulations. Demand and supply will be greatly affected by certain government regulations which involved in control of price in markets. When price of good increases by regulation to higher value then supply will increase with a decrease in demand. Customers demand will diminish when the price is regulated to higher. And the demand will be increased as the price regulated with low value. Supply seems to be decreased here. Regulations may be implemented  in consider with health,, safety, environment or even economy. Regulations may some times causes chain reactions in the market outcomes. Such as when some regulations were implemented in the production of drugs it leads to diminished production of life saving medicines . Although it decreases the use of drugs it deveelops neew issue.