Causes Of Changes In Supply And Demand

588 words - 2 pages

Introduction*

*A basic economic concept plays a vital part in prices of goods. The prices are set in a market that is supported by the laws of supply and demand. Supply and demand factors determined the wants and desires of people or a group. Supply is the product or service a producer has uncommitted and capable to legal transfer by selling . Demand is the amount of the product or service that buyers want to buy .This means that every market has two sides. The two sides are buyers and sellers. The demand side of the market are the buyer. The supply side of the market are the sellers. The relationship of supply and demand has a lot of influence on the price of tangible and intangible goods that are made and bought to satisfy the needs and desires of consumers in a society.
Causes of Changes in Supply and Demand*

*The causes of changes in supply and demand are people's behavior to cost and benefits. This means that when people realize that the costs of an activity have raised or the benefits of an activity reduced, people execute the activity less because the common factor is price. For example, a person buying shrimp fried rice are not concern about what the shrimp or rice cost, including the details of growing rice or shrimp breeding. The rice grower and shrimp farmers are not concern about the income of the buyers. It is the cost of that affect them. When one factor changes, it affects supply or demand, not both.
*The causes of changes in supply and demand are based on people's behavior to cost and benefits. This means that when people realize that the costs of an activity have raised or the benefits of an activity reduced, people execute the activity less...

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