Supply and Demand
There are many factors that play a big role while people are making a decision to spend money to buy anything either they are running a business, or just shopping and buying things for their daily life. Sometimes in some situations, people find themselves facing big financial decisions that they need to make in order to have a better life, whether they are buying a new car or a new home. No matter what decision they are facing, the laws of supply and demand always play an important role in that decision. The laws of supply and demand simply explain how the price and the quantity of anything being sold in the markets are determined. It is very simple and it will always make sense and help you save or make a lot of money if …show more content…
How many the customers are willing to purchase at that price is called the quantity demanded. Keep in mind that demand and quantity demanded are two different and separate things. When business owners claim that customers have a demand for a specific product or service, they are basically declaring that people have the money, which they are willing to pay in exchange for that specific product or service. If customers do not demand what they don’t need or want; therefore, a need or a want from customers that lack purchasing power, which is the money is basically not a demand. A simple example that represents demand would be a new restaurant that opened up in a neighborhood and it got a lot of great reviews from friends and family members and even on the internet, but there are only 15 tables in that restaurant and it’s always full of people because the food is so good and everyone wants to get a reservation there. Demand for the reservations would go up. Supply can also be described as many things. It could be how much there is a product or service is available to the consumers in the market. It could be
There are many factors that play a big role while people are making a decision to spend money to buy anything either they are running a business, or just shopping and buying things for their daily life. Sometimes in some situations, people find themselves facing big financial decisions that they need to make in order to have a better life, whether they are buying a new car or a new home. No matter what decision they are facing, the laws of supply and demand always play an important role in that decision. The laws of supply and demand simply explain how the price and the quantity of anything being sold in the markets are determined. It is very simple and it will always make sense and help you save or make a lot of money if …show more content…
How many the customers are willing to purchase at that price is called the quantity demanded. Keep in mind that demand and quantity demanded are two different and separate things. When business owners claim that customers have a demand for a specific product or service, they are basically declaring that people have the money, which they are willing to pay in exchange for that specific product or service. If customers do not demand what they don’t need or want; therefore, a need or a want from customers that lack purchasing power, which is the money is basically not a demand. A simple example that represents demand would be a new restaurant that opened up in a neighborhood and it got a lot of great reviews from friends and family members and even on the internet, but there are only 15 tables in that restaurant and it’s always full of people because the food is so good and everyone wants to get a reservation there. Demand for the reservations would go up. Supply can also be described as many things. It could be how much there is a product or service is available to the consumers in the market. It could be