As a group, discuss different factors that would affect the market for donuts. Now, suppose that the price of sugar has increased and at the same time, it is January and many people have just done their New Year's resolutions, one of which is to eat less sugar. What will the impact be on the market for donuts?
As a group, discuss different factors that would affect the market for donuts. Now, suppose that the
Demand refers to the quantity of the goods demanded by the consumers at a given price during a given period of time. Supply refers to the quantity of the goods which the sellers are willing to produce and offer for sale at a given price during a given period of time. Both demand and supply come together to determine the equilibrium position in a competitive market. The market reaches equilibrium when the quantity demanded is equal to the quantity supplied and any change in any of the two disturbs the equilibrium.
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