Law Of Supply Example

To get rid of the excess supply farmers need to lower the price of corn and thus the price is driven down for everyone.

Law of supply example. Over the last month she noticed that the price of strawberries is steadily increasing having reached 2 89 per pound from 2 64 per pound. There are numerous examples of economic behavior which are in conformance to the law of supply. Supply or the lack of it also dictates prices. Fruit vendors will try to make available more fruits for sale when the fruit prices are high and relatively less when the prices are low.

For example a business will make more video game systems if the price of. Examples of law of supply. Here s a graphical representation of the law of supply also known as the supply curve. The supply function requires more apples which generates more production to meet demand.

The week before the championship game t shirts and other items with the. Business cycles the law of supply and demand explains the cycles of boom and bust experienced by many industries. Let s look at an example. Supply is the source of economic activity.

Bar on the top of last four non price factors indicates that these variables also affect the supply but they are held constant. For example if the supply of apples doubled next year prices would tumble and some consumers would buy more apples based on price comparisons with other foods. Jennifer is a fruit vendor and has a little store at the end of the road. Examples of the law of supply corn crops are very plentiful over the course of the year and there is more corn than people would normally buy.

Example of law of supply. One example of the law of supply applies to fans of a football team who just won the championship to head to the super bowl. The law of supply is based on a moving quantity of materials available to meet a particular need.