Question

identify an investment decision that someone has made. (this should be for goods or services for which one or more payments were made in order to recieve increased benefits from those goods or services at a later time.)

how do you think the concept of supply and demand impacted the investment decision?

now that you understand the time value of money, how would you use your problem solving skill (especially critical thinking strategies) ti rethink the decision in the future

Answer 1

The individuals invest in the financial market regularly. For instance: A person invested in mutual funds of Axis Bank. He has to spend to gain subsequent returns periodically. It is a procedure that the individuals have to pay the installments of the investments usually either monthly, quarterly, or annually. The individuals have to spend money to gain money. The demand and supply decisions also play an essential role in the investment decisions. A law that an increase in demand for the stock in the financial market increases the investment prices and returns.

On the other hand, if the price increases, the demand for the stocks decreases. Further, according to the supply rule, if the price increases, the quantity supplied also increased. Hence, the demand function works negatively, whereas the supply function works positively. It also influences the investment decision because the individuals tend to buy the stakes with high returns to gain more. Further, the money also has value. The study of the pattern of the stocks will also affect the future decision of the investor. The investors first tend to analyze the market and then make an informed decision. The money value plays a vital role in deciding for the investment because it will understand the best option to gain. Hence, the investment decision subsequently depends on the supply, demand, and money value.