Tuesday, September 22, 2009

Supply and Demand

Look at this website and give a real world example for supply and demand. For example, if people some using cars and walking, what would happen to the price of cars?

7 comments:

  1. This is a substitution effect problem. In the real life, there is have two parts of people are participating in all economy system, one is supply, and another is demand. Say the cars, as the point of view of supply, if more people buy cars , and the price would be go up, untill to the top, assume that no one wants to buy a car any more. So the price would be drop so hard, until to the bottem. It will go this for a while, but once the supply offer huge amount over the needs, the price would also go down, untill the turn to the equilibrium price.

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  2. An example of supply and demand would be if people buy more boat tickets then airline tickets then airline ticket will be cheaper. Boat tickets will be more expensive because people will be buying them. Then airline tickets will be cheap because less people will buy them so to make money the tickets will be cheaper. Supply and demand is something that goes up and some else goes down.

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  3. I think a good example of supply and demand will be cars because if you decide to ride a bus instead of just buying a car then cars business will come down and then it would be difficult for dillers to sell their cars and then the dillers would bring the car prices down and then they would sell more. But if they see that people are buying their cars then they would bring the prices up again........

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  4. A good example of supply and demand is when people take more ride on taxi then buying their own car. When people take more taxi that mean the taxi business will go up, and the car business will go down automatically, because people are not using invention. One thing people hardly use car is because is expensive and it cost so many gasoline and a lot of money goes in gas. If you use less car that mean less pollution.

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  5. I think good example for demand and supply would be new styles. When we use new style clothes than that demand is too high for that perticular store and after that they produce to many of that and all of the sudden their demand falls down. So for that you can never be sure about how many supply do you produce and product can be popular if you have some thing new. I think it's important to graph and keep on track with all that.

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  6. the best way to explain supply and demand, for example if ferrary dealer seles one car then toyota will have to sele100 of their cars to collect the amout of maney that ferrary made for just seling one of their cars. ferrary price 300.000.000/ the price of toyota cars 10.000.

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  7. an example of supply and demand could be computers everyday technology is changing and new computers are on sale so that means that people is changing his or her old computers for new ones if people buy many computers the demand increase and the price goes up .

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