1. Discuss your personal experience on the interaction of demand and supply of alcohol.
Answers
Answer:
So the demand curve for alcohol tends to be steeper, having less sensitivity to price variations. As shown in the above figure demand curve for alcohol tends to be steep. ... On the other hand, supply curve of alcohol is influenced by the price of alcohol, cost of production, price of inputs and factors of production.
Answer:
The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it. Generally, as price increases, people are willing to supply more and demand less and vice versa when the price falls.
The theory is based on two separate "laws," the law of demand and the law of supply. The two laws interact to determine the actual market price and volume of goods on a market.
Explanation:
The law of supply and demand, one of the most basic economic laws, ties into almost all economic principles in some way. In practice, people's willingness to supply and demand a good determines the market equilibrium price, or the price where the quantity of the good that people are willing to supply just equals the quantity that people demand. However, multiple factors can affect both supply and demand, causing them to increase or decrease in various ways