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Someone who has a large quantity of something he needs to get rid of quickly.
Someone who has a large quantity of something he needs to get rid of quickly.
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Explain the say's law in economics?
states that supply creates its own demand.
What are the Keynes' critiques on classical economics?
One of the main critiques is on say's law, which is that supply creates its own demand. In a nutshell Keynes was able to explain the great depression by saying that demand creates supply. This is extremely simplified.
Can supply create its own demand?
Yes demand can create its own supply, the Keynesian economist view believed this. Markets will always try to meet demands because they want to gain the most they can from it therefore will create a supply to match demand.
How is elasticity of supply related to elasticity of demand?
Elasticity of supply refers to the responsiveness of guantity supplied of a commodity to changes in its own price. And the formulafor measuring elasticity of supply percentagechange in quantity supplied/ %change in price
How does demand help determine supply?
its easy, when supply is increased, the price decreases. A decrease in price leads to an increase in demand. So technically supply creates its own demand. Supply function is not what is available for supply, it is clearly defined as "what is the quantity of goods that suppliers are willing to supply at each price". So even if a supplier has ample stock it does not mean it is the supply of that product . Technically supply is fixed by the producer or supplier who fixes it through their willingness. Thus supply is directly proportional to price. If price increases supply increases and vice versa. The logic behind this is if price goes up "having the cost of production at the same level" the profit margin increases. thus to earn more profit more quantity is supplied at high price and vice versa. Thus generally speaking supply cannot create its own demand unless the good is a perishable one which the supplier cannot have more shelf life and it has to come to market causing the price to decrease effecting in high demand.
Explain the say's law in economics?
states that supply creates its own demand.
What are the Keynes' critiques on classical economics?
One of the main critiques is on say's law, which is that supply creates its own demand. In a nutshell Keynes was able to explain the great depression by saying that demand creates supply. This is extremely simplified.
Can supply create its own demand?
Yes demand can create its own supply, the Keynesian economist view believed this. Markets will always try to meet demands because they want to gain the most they can from it therefore will create a supply to match demand.
How demand creates its own supply?
its easy, when supply is increased, the price decreases. A decrease in price leads to an increase in demand. So technically supply creates its own demand. Supply function is not what is available for supply, it is clearly defined as "what is the quantity of goods that suppliers are willing to supply at each price". So even if a supplier has ample stock it does not mean it is the supply of that product . Technically supply is fixed by the producer or supplier who fixes it through their willingness. Thus supply is directly proportional to price. If price increases supply increases and vice versa. The logic behind this is if price goes up "having the cost of production at the same level" the profit margin increases. thus to earn more profit more quantity is supplied at high price and vice versa. Thus generally speaking supply cannot create its own demand unless the good is a perishable one which the supplier cannot have more shelf life and it has to come to market causing the price to decrease effecting in high demand.
How is elasticity of supply related to elasticity of demand?
Elasticity of supply refers to the responsiveness of guantity supplied of a commodity to changes in its own price. And the formulafor measuring elasticity of supply percentagechange in quantity supplied/ %change in price
How does demand help determine supply?
its easy, when supply is increased, the price decreases. A decrease in price leads to an increase in demand. So technically supply creates its own demand. Supply function is not what is available for supply, it is clearly defined as "what is the quantity of goods that suppliers are willing to supply at each price". So even if a supplier has ample stock it does not mean it is the supply of that product . Technically supply is fixed by the producer or supplier who fixes it through their willingness. Thus supply is directly proportional to price. If price increases supply increases and vice versa. The logic behind this is if price goes up "having the cost of production at the same level" the profit margin increases. thus to earn more profit more quantity is supplied at high price and vice versa. Thus generally speaking supply cannot create its own demand unless the good is a perishable one which the supplier cannot have more shelf life and it has to come to market causing the price to decrease effecting in high demand.
Explain the law of supply in your own words?
Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc
What term describes the process by which a tumor creates its own blood supply?
the process through which the tumor supports its growth by creating its own blood supply is called angiogenesis
What is Composite supply?
The composite supply rule applies where there is a principal element as well as an ancillary element or elements being supplied and where the ancillary elements would not realistically be sold on their own without the principal element. Such ancillary supplies are not physically and economically dissociable from the principal supply.
Example of supply create its own demand?
For example > Supply means somebody did work to create that supply, work means somebody earned wages by creating that supply(producing something which is going to be sold out). Wages is what enable that worker to then demand goods and services from other workers. Which then becomes their wages, and so on.
Who owns the factors of production in new zealand?
major businesses and people own it and runs it according to supply and demand
How does supply and demand affect pricing?
If supply is greater then the demand then the price is lower but if the demand is higher then the supply then the price is higher due to rarity. :)
