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Name: Date: Course: Instructor: Institution: Supply and Demand: Why Markets Tick Introduction In every market operation that occurs between a buyer and a seller the worth of that particular commodity is dictated by the supply and demand in the market. In return demand and supply are determined by the technology and situations under which individuals operate. At a particular time the market might be populated by a huge amount of virtually identical sellers and buyers. At another moment there might be one buyer and one seller. Article Summary The article in review addresses issues of price in which both supply and demand are equal. Fig 1: Demand and Supply curve Conclusion As seen above prices of products can change due to various reasons; weather conditions technology and consumer preference. The link between demand and supply for products and services as well as fluctuation in prices is referred to as elasticity. Inelastic products are insensitive to price changes. On the contrary elastic products are responsive to changes in price. Works Cited Irena Asmundson. “Supply and Demand: Why Markets Tick.” www.imf.org Finance Economics and Development July 29 2017. Accessed on: 29th September 2017. [...]

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Subject Area: Economics

Document Type: Term paper

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Words 550

Pages 2

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09.29.2017

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