Chapter 3 Pg 66 Question 7
Chapter 3 Page 66 Questions 7
Suppy- suppliers with a product to sell
Demand- Buyers looking for products
Shortage- Not enough of a product from the suppliers. Shortages cause the price of a good to rise
Surplus- Too much of a product that a buyer does not want. This will cause the price to drop.
“In the corn Market, Demand often exceeds supply and supply sometimes exceeds demand.” * Demand Often exceeds Supply
Demand can exceed supply when there is not a large enough supply. Is there was a draught, and there was a reduced amount of corn that grew one year, the demand for the Corn would exceed the supply that there is. This would be a shortage
* Supply can sometimes exceed Demand.
If the Supply of corn was more than what the buyers wanted, there would be a surplus of corn. This would mean that the sellers (suppliers) would end up with excess at the end of the year because the buyers (demanders) didn’t want to buy their corn
“The prices of corn Rises and falls in response to changes in supply and demand”
If there was a shortage of corn, the price of corn would rise. The buyers would be more willing to buy the corn for more, and the sellers would raise the price to get the most profit that they could. If there was a surplus, the price would fall. If the suppliers had too much corn, they would have a sale on it. They would hope that this would make the buyers want to purchase more corn.
I think that both of these statements are true. I decided to dissect them to show why and how I believe them both to be true. I would love to hear from someone that does not agree with me! The book does ask you to pick one, so they can’t both be
Suppy- suppliers with a product to sell
Demand- Buyers looking for products
Shortage- Not enough of a product from the suppliers. Shortages cause the price of a good to rise
Surplus- Too much of a product that a buyer does not want. This will cause the price to drop.
“In the corn Market, Demand often exceeds supply and supply sometimes exceeds demand.” * Demand Often exceeds Supply
Demand can exceed supply when there is not a large enough supply. Is there was a draught, and there was a reduced amount of corn that grew one year, the demand for the Corn would exceed the supply that there is. This would be a shortage
* Supply can sometimes exceed Demand.
If the Supply of corn was more than what the buyers wanted, there would be a surplus of corn. This would mean that the sellers (suppliers) would end up with excess at the end of the year because the buyers (demanders) didn’t want to buy their corn
“The prices of corn Rises and falls in response to changes in supply and demand”
If there was a shortage of corn, the price of corn would rise. The buyers would be more willing to buy the corn for more, and the sellers would raise the price to get the most profit that they could. If there was a surplus, the price would fall. If the suppliers had too much corn, they would have a sale on it. They would hope that this would make the buyers want to purchase more corn.
I think that both of these statements are true. I decided to dissect them to show why and how I believe them both to be true. I would love to hear from someone that does not agree with me! The book does ask you to pick one, so they can’t both be