Influences On Supply And Demand

Economics is defined as the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and pass on those choices. Scarcity and incentives are essentially the wants and needs of consumers to purchase accredited goods or services and the availability of those goods and services at a given time. Companies spend years studying the markets so that they do-nothing accurately price their products to earn the maximum profit ground on the supply and indigence for that good or service. append price of a product decreases the quantity demanded while fall price for that same product increases the demand. Oil for example raise vary in price from week to week because of authorized situations that limit the supply. In James Herrons article in the Wall Street Journal, IEA Again Cuts Oil-Demand View, he outlines several examples of situations that increase and decrease the supply and demand for crude such as natural disasters, population growth, and economic downturns.
Natural disasters can disadvantageously affect a countrys supply and demand for certain products.



For example, Japan was unitary of the most advanced countries in the world in atomic energy; however when the gigantic earthquake happened it caused a nuclear meltdown in one of their major power plants releasing very dangerous toxins into the air. Japans oil colour demand rose 9.5% in December from the year-ago month, as it uses fossil fuels to fill the gap left by shutdowns in its nuclear industry after the earthquake and tsunami last year (WSJ). This sledding of supply of nuclear power is the reason their demand for oil increased so dramatically in just a years time.
Another portion that plays a coarse role in determining the supply and demand for a product is rapid population growth. The more people that are in a country requires that much more electricity to house them as well as gas for their cars and etcetera. This factor is...If you want to get a full essay, order it on our website: Orderessay



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