I have a question about seasonal products.
Lets say halloween products, on halloween the price rises and the demand rises too. Is that a violation of the law of demand?
To me it looks like a violation, but then again the law of demand is not set in stone. There must be an exepcion to it.
2007-09-10 09:35:29 · 3 answers · asked by che_leyla 1 in Business & Finance ➔ Advertising & Marketing ➔ Other - Advertising & Marketing
The demand is greater then the supply. However te prices do not tend to rise per piece of merchandise. The only raise is the number of pieces sold, therefore the profit comes from increased quantity of sales, not increased prices.
2007-09-10 09:41:28 · answer #1 · answered by Landlord 7 · 1⤊ 0⤋
Not a violation, a confirmation. The law of demand says that when demand rises, prices do too. Of course in reality, supply has much to do with it too - it's usually referred to as the law of supply and demand.
2007-09-10 16:42:29 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
this is simple economics. What would you pay for yesterday's newpaper? Merchants want to clear out their out of season merchandise after the season is over and would rather sell it cheap than just toss it in the trash.
2007-09-10 16:44:52 · answer #3 · answered by Anonymous · 0⤊ 0⤋