The availability, or "supply," of goods or services is a key consideration in determining the price at which those goods or services can be obtained.
The demand curve, which shows the relationship between the demand of a product and its price, is depicted by using a graph.
Price appears on the vertical axis of the graph, while quantity goes on the horizontal axis.
Certain factors affect the demand curve. If the size of the market decreases, the demand curve shifts to the left, showing a higher price and fewer potential buyers. If the size of the market increases, the demand curve shifts to the right, showing a lower price and a larger number of potential buyers.
Complementary Products and Services Products and services that complement what you offer the market can affect the demand curve. For example, you may sell hot dogs, while a complementary business offers hot dog rolls.
If the price of the hot dog rolls increases, it can cause the demand for hot dogs to decrease. As a result, the demand curve shifts to the left, and the price for hot dogs would also increase. Substitute Products and Services Consumers may select substitute products and services in place of what your company offers.
These substitutes act as competition for your business. As an example, if you sell tea, the substitute for that product could be coffee. If the price of coffee increases, you may see a spike in the number of people who want to purchase tea.
As a result, the demand curve shifts to the right, and prices for your tea may decrease. The level at which a customer desires your product can affect the demand curve. As more customers want a product or service, the demand curve shifts to the right, and as they want it less, the demand curve shifts to the left.
If a consumer loses his job or takes a new position with lower salary, his demand may decrease. An increase in income shifts the demand curve to the right, while a decrease shifts it to the left.
Future Expectations If consumers expect the cost of a product or service to increase, they may stock up on it now, to avoid paying the higher price later. This may temporarily shift the demand curve to the right, but once prices increase, as expected, the demand curve shifts to the left.The law of supply and demand does not apply just to prices.
It also can be used to describe other economic activity. For example, if unemployment is high, there is a large supply of workers.
The world demand for sugar is the primary driver of sugarcane agriculture. Cane accounts for 80% of sugar produced; most of the rest is made from sugar beets. Sugarcane predominantly grows in the tropical and subtropical regions. A demand curve or a supply curve is a relationship between two, and only two, variables: quantity on the horizontal axis and price on the vertical axis.
The assumption behind a demand curve or a supply curve is that no relevant economic factors, other than the product’s price, are changing. International Journal of Managing Value and Supply Chains (IJMVSC) Vol.5, No.
2, June Liu () in a recent paper analyzed factors affecting the decision regarding brand in the mobile phone industry in Asia. It was found that the choice of a mobile phone is characterized by two that the customers demand for color display handsets.
In economics, supply refers to the quantity of a product available in the market for sale at a specified price at a given point of time.
Unlike demand, supply refers to the willingness of a seller to sell the specified amount of a product within a particular price and time. Electricity – Supply side factors like demographics of land and distribution of population, availability of natural resources, political, economic environment and trade policies, type of economy (developed, semi-developed, underdeveloped) mainly have an influence on the price and availability of this commodity.
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