Example Of Supply And Demand

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Supply, Demand, and Market Prices are very key to the Economics world. The two, Supply and Demand, impact each other and impact prices of services within an economy and as well as consumer goods. Supply is the amount of a good or service that is obtainable at a certain time to consumers. When we talk about consumers, they reveal attention in buying a good or service, exhaust available supply, the when that happens the demand will certainly rise. Demand is a calculation of consumer wants and consumer spending on a particular good or service at a specific price. As the demand increases, available supply decreases and an increased supply may satisfy available demand at that price. Prices may fall if supply continues to grow. If supply decreases, …show more content…
He starts talking about specific Oil and Gas prices starts to rise then that is when the supply has to change in order for the companies to make profit, then he says that the oil producers outside of the OPEC start pumping more oil in order to take advantage of the higher prices. Charles Wheelan also gives an example of a Market Price when he uses the dogs. He states that “the price will settle at the point where the number of dogs for sale exactly matches the number of dogs that consumers want to buy. If there are more potential pet owners than dogs available, then the price of dogs will go up.” Charles Wheelan explains these concepts in a way where most people can understand the idea that he is trying to get …show more content…
A personal example I have based on a market price are the Soccer jerseys I buy from my cousin that has his own Soccer store. Before I see what jerseys I want to buy from my cousin, I always see what the price is for that specific jersey in the market. If I know I can make a profit by buying that jersey then I will buy it, but if I see that the market price is low for a specific Jersey then there is no use on buying that jersey because I won't make a profit on that Jersey. I also have to see what other people are selling that Jersey for in order to be a competitive seller. Market price is a very simple thing to understand, you just have to know what the price is going for in the market, and you have to be aware what other competitive sellers are selling that product

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