economics.............?

A

Amber H

New member
1.What three conditions are necessary for demand of a product?

1.
2.
3.

2.How does competition affect consumers and producers?


3.Explain how a shortage of a good can be caused by its prices?


4.explain the difference between elastic and inelastic demand?





5.Why are producers willing to make more goods when the price is high?

6.why do companies try to keep production costs low?
7.how does an equilibrium price come about?
8.how does a market price below equilibrium create a shortage?
9.what effect do shortages have on prices?
10. what effect do surpluses have on prices?
 
Too many questions for only 2 pts to answer.

Let me put in my two points worth, lol.

1.What three conditions are necessary for demand of a product?

1. It must be priced appropriately

2. Buyers must both know about the product, and be abl to get to where you sell them.

3. There has to be an appropriate supply of products to meet demand.

For example, if you could produce car batteries for only $10, that would be a great price, and everyone would want one, IF they could get to your store, or place where you sold them (advertisements may be necessary too).

But, if you could only make two batteries a week, and 100 customers wanted one of those $10 batteries, you'd be sued by many angry consumers for false pricing, or false advertising, if you could not meet the demand.
 
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