SUPPLY

AND
DEMAND

Hajar Hessane
Wijdane Radnaoui
Najwa Majid
Jihane Sahlaoui
Basma Aznad
Khawla khoubaizi
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1: DEFINITION
 2:Factors affecting demand and supply;
Supply:
Factors Affecting Supply There are certain factors that directly affect supply and
determines whether there will be high or low supply. The capacity of a producer or
company, the costs of producing specific items including cost of materials, labor, and
equipment can affect supply. Other factors include the presence of competitors in the
market. Also, if the production of an item is determined by weather, for instance, a
company that manufactures sweaters, the supply of products will the determined by
weather. The supply chain is another factor that affects supply.

Demand:
The cost of a product, that is, the price at which the product will be purchased.
The availability of other alternatives in the market.
The importance of the product, whether it is an inferior good or otherwise.
The price of complementary products.
These and few others are factors that affect demand.
 3:What is the Law of supply and demand?
The law of supply and demand reflects the relationship between demand and
supply in that a change in one causes a change in the other. According to the law of
supply and demand, when there is higher demand for a commodity, there is a rise in the
supply of such commodity and vice versa. The law of supply and demand explains the
interaction between the desire for a product and the supply of that product. For
instance, if the supply of a product is how and the demand is high, it means such
product is scarce and insufficient for the number of people that wants it, hence, it will
lead to an increase in the price of the product.
 4:Do supply and demand only affect prices?

The law of supply and demand is an economic theory that affects diverse
economic principales and not just the concept of price.For instance;supply
and demand is an important gauge for measuring economic growth and It is
important when calculating the gross domestic product (GDP) of a country for
a particular time.the rate of employment and unemployed can also be
determined.The law of demand and supply is also applicable to wages for labor
business,among others.
 Supply-Demand
Market Equilibrium

When a market is in equilibrium

  D
 a
 S
 A

Price per xbox 360 $500

 450

 400
 E
 350

 300
 g  G


 250
 D
 200
 S
 0  30  40  50  60  70  80  90
 Quantity
 in Billions of Xbox 360 per Year

this equilibrium gives us the market price and the quantity sold
Excess demand Excess supply