HOW SUPPLY AND DEMAND AFFECTS CONSUMERS
Supply and demand is an economic concept vital to the free market economy. Supply is the amount of something, such as a product, that a market makes available. Demand is the amount of the product that buyers want to purchase.
Price has a significant effect on demand. The higher the demand, the more expensive the product. The lower the demand, the less expensive the product.
By limiting the supply of a product that is in great demand (Nintendo game during Christmas time) it is expected that the price will be high.
Price has a significant effect on demand. The higher the demand, the more expensive the product. The lower the demand, the less expensive the product.
By limiting the supply of a product that is in great demand (Nintendo game during Christmas time) it is expected that the price will be high.