Supply and demand are powerful forces in a free market. In four to five sentences, explain some of the factors that cause shifts in supply and demand and what the effects of these shifts are.
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Advocates of the free market contend that government intervention hampers economic growth by disrupting the natural allocation of resources according to supply and demand, while critics of the free ...
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The consumers play and important role in determining the supply and demand ratio of a product.
Factors that cause shifts in supply and demand and what the effects of these shifts are mentioned below:
Population: An increase or decrease in population can effect the supply and demand of a product. If the population increase, the supply will become less and demand will be more.
Competition: If another product with the same benefit is launched by another company, then a shift in the supply and demand is observed. In such a scenario, one might observe a decrease in demand.
Improvement: If a product is not improved with time, consumers might lose interest and the demand will be less for the product.
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