SUPPLY AND DEMAND AFFECT PRICES

Supply And Demand Affect Prices

Supply And Demand Affect Prices

Introduction

In this item, we will be looking on how supply and demand sway prices. In considering this theme we will be looking at the cost where the amount of items claimed is identical to the amount supplyd (equilibrium of price). (Bowden 2009)

Discussion

Equilibrium of Price: This is the cost at the amount of items claimed is identical to the allowance supplied. Let us take an demonstration, state when the cost of a tin of milk is $1 there was a demand of 100 tins of ...