Excess Demand Scenarios

Now in the excess demand situation unlike excess supply, where they have less of the good than the price. Seller will raise the price to meet the demand. This is when the quantity demanded exceeds the price at they want to sell. In this situation, buyers will tend to pay more for a product to compete against others consumers the insufficient about of the product. Its like going to an auction and buying a rare drone. Until the price of a product is still below market equilibrium which is a shortage, the price will still keep bidding up. If the demand for drones increases and supply stays the same, the market equilibrium price and quantity will both increase. The demand curve will shift to the right when this happens, but the supply curve will stay the same. Price of this demand will momentarily stay at the same place. But this price won’t last long because of the new demand curve and the market equilibrium needs to go back to normal. Furthermore, since there is an excess in demand, price will exceed the quantity supplied. Any …show more content…
“There are lost-cost drones on the market, but you’re still looking at spending around $500 to get a solid model that’s state in flight with an excellent integrated camera” (Fisher, 2016). These drones aerial photography drones range an average of $500 - 1500. On the FPV side of drone racing there are from $150 - $900 depending on how fast you want it. Military drones cost are something else, lets say out of your average consumer price reach. Since before my time drones/unmanned aerial vehicles were on the drawing board to be made. Today, there are a common occurrence in the park for recreational use or being used by the military to do their job. Drones demand will increase and the supply will also be increased. The best thing about this is that the price will go down which every consumer likes. The only thing that can slow this down is when regulations are put in place to hinder their