menu
bartleby
search
close search
Hit Return to see all results

How does supply and demand work in everyday life?

Question

How does supply and demand work in everyday life?

check_circleAnswer
Step 1

The demand and supply works as per economic laws in daily life as well.

When in some cases, the demand of a particular product increases but the supply of that product cannot be increased as per the level of demand. This means there is a shortage in the market for that product which will create the upward pressure on the prices of the product. The same principle reflects in our daily life as well.

For example,  for a newly released movie, the tickets for the show is limited however, the demand for tickets is very large and therefore, the cinema houses charges higher ticket prices for tehe recent releases. or we can say that the demand for tickets is higher during weekends. Therefore, the price of tickets is higher during weekends then during week days.

Second example for the above principle, the new make of a car company have a higher demand for new model but supply is limited, resulting in the selling of such model at a premium above the price.

Step 2

And when the supply of product is higher but does not have same demand i.e. having lower demand than supply, in such the price of such product have a downward pressure and prices get reduced. This happens in real world as well.

For example, in our daily lif...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: What would happen if we all decided that money has no value?

A: Money has a value, as it is issued by the government that is used around the world. People use the p...

question_answer

Q: Chicago economists think that leakage in the circular flow model does not exist. If this is the case...

A: There are four major sectors in the economy i.e. households, firms, factor market and goods and serv...

question_answer

Q: Chapter 9 Question Most cities are served by only one cable company. How might this monopoly power a...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

question_answer

Q: The Mini-Case “Economics of Scale at Google” describes economies of scale for Google Cloud Storage. ...

A: Economies of scale refers to the advantages of reduced per unit costs of production due to increased...

question_answer

Q: Q3 O Qi Total revenue O Q2 all quantities beyond Q1 Total cost Where on the graph does the firm earn...

A: Since, the first question is not complete. So, I am solving second and third part.

question_answer

Q: Your firm has a new strategy that will make its established product obsolete.  However, it will take...

A: There are many type of consumers are there in the economy. Some will buy the product at the time of ...

question_answer

Q: What will be the firms total profit?

A: In Perfect competition, the firm is in equilbrium where the MC curve cuts MR curve below. Here, MR a...

question_answer

Q: Consider the following production and cost functionsq=〖(10K^(2/5)+5L^(2/5))〗^(5/2)1250=20K+8LWhich i...

A: Production technologies or production function defines a relationship between the output and inputs....

question_answer

Q: In the collusion game, collusion was only sustainable in the infinite horizon repeated game. One Nas...

A: Game theory:Game theory is a hypothetical system for imagining social circumstances among contending...

Sorry about that. What wasn’t helpful?