Sunday, October 5, 2014

The Law of Demand



The video above is a basic explanation of the law of demand. If you lower the price of something, demand will go up. For a more practical illustration of this. See the video below.




When price goes down, supply generally decreases, so a limited number of products are made available but demand is high. So what happens when demand out-strips supply? A shortage ensues. The greater the shortage, the higher the anxiety.


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