Wednesday, May 20, 2009
Supply► and Demand ♦
In Economics, Services supply the demands of the Consumer. When the consumers demand for a good meets the price of the suppliers product( as seen in the graph on your left), it creates an intersection, better known as a equilibrium point. The equilibrium point isn't created by the manufacturer or the consumer, but by the forces of the market. If the demand for a product is higher than the supply, the price of the product is likely to increase. If the supply is higher than the demand of a certain product, the price decreases and if the demand is really low, the product may become obsolete. When it becomes obsolete, the quantity will be really low. The price and quantity of a product is determined by their relationship with each other.