Wednesday, May 20, 2009
Economics, Supply and Demand
Supply and Demand. At first I thought supply and demand was really really hard, but now since someone explained it to me I understand it a bit better. Please tell me if you like the way I explained this or you didn't understand it at all, thanks!
The supply of something is how much they have in stock and the demand of something is how much the people buying the products want it. If the supply of something was low and the demand was really high, then obviously they would make more copies of the product thus, making the supply increase. But if the demand of something was really low and the supply of it was really high, they would stop making copies of it because they would be losing money. When the supply and demand are both equal, this is called the equilibrium point.
Here is a diagram of supply and demand.