2007-03-11 14:00:39 · 3 answers · asked by Anonymous in Social Science ➔ Economics
Simple; very important, large supply little demand = little or no profit. Little supply large demand = large profit.
2007-03-11 14:05:09 · answer #1 · answered by hans t 2 · 1⤊ 0⤋
The market (supply and demand)show how two decision making groups find balance or equilibrium. Based upon price guide posts, buyers and sellers behave in a certain ways. When the decisions of buyers and seller balance, then price is officially determined where no surplus and no shortage exist. Changes in demand or changes in supply will alter this condition and outcomes will then differ from the original price and quantity positions.
2007-03-11 14:22:09 · answer #2 · answered by econgal 5 · 0⤊ 0⤋
The higher the demand, the more people will want to buy your product, and vice versa. The higher your supply, the more products you have available to sell, and vice versa.
2007-03-11 14:08:23 · answer #3 · answered by Gordon Freeman 4 · 0⤊ 0⤋