Question

The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good.

a) Identify an event that involves prices that you have observed in the news, history, or your life that might be explained with Supply and Demand.

Your answer needs to provide at least two paragraphs.
The first paragraph discusses your observation.
The second paragraph explains how you use Supply and Demand.
Please make sure to indentify the groups that determine the supply and the groups that determine the demand.

Answer all the questions in well developed paragraphs. The paragraphs should be at least five or six sentences long, and they should clearly include a topic sentence.

Answer 1

Acc to Ques:

a) dentify an event that involves prices that you have observed in the news, history, or your life that might be explained with Supply and Demand.

Supply and demand, in economics, relationship between the quantity of an item that producers wish to sell at different costs and the quantity that purchasers wish to purchase. It is the principle model of value assurance utilized in monetary hypothesis. The cost of a product is controlled by the communication of supply and demand in a market. The subsequent cost is alluded to as the balance cost and speaks to an arrangement among producers and purchasers of the great. In balance the quantity of a decent provided by producers approaches the quantity demanded by buyers.

It is really a parity of the market components. To comprehend why the equalization must happen, look at what happens when there is no parity, for example, when market cost is underneath that appeared as P in Image 1.

At any cost beneath P, the quantity demanded is more noteworthy than the quantity provided. In such a circumstance, buyers would clatter for an item that producers would not supply; a lack would exist. In this occasion, buyers would decide to follow through on a greater expense so as to get the item they need, while producers would be energized by a more exorbitant cost to bring a greater amount of the item onto the market.

The final product is an ascent in cost, to P, where supply and demand are in balance. Thus, if a cost above P were picked discretionarily, the market would be in surplus with a lot of supply comparative with demand. If that somehow managed to occur, producers would take a lower cost so as to sell, and customers would be initiated by lower costs to build their buys. Just when the value falls would adjust be reestablished.