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Taya2010 [7]
3 years ago
9

Supply and demand are powerful forces in a free market. In four to five sentences, explain some of the factors that cause shifts

in supply and demand and what the effects of these shifts are.
Social Studies
2 answers:
Slav-nsk [51]3 years ago
6 0
The shifts in supply and demand happens when the prices of goods and services decrease and increase. Supply is considered as competition. Having the same products as another ,changing the prices of the products will have you winning the competition. Demand shifts is when consumers/people purchase the goods that has changed prices.
mixer [17]3 years ago
3 0

Answer and Explanation.

Demand is the quantity of products and services as desired by the buyers who are the consumers.This is the amount of the products which people are capable and willing to buy at a certain affordable price while supply is the representation of what or how much a market can offer.

When the amount of goods and services which are available in the market increases or decreases, the shift in the supply occurs. Shift in supply is caused or happens whenever the prices change, normally when there is similar production of goods and services by the competitors or when there is change in availability of resources or labor.

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The demand to the environment increases as poverty drives people to turn to the environment to support them as they struggle through poverty .

Due to the lack of electricity for example people will turn to the environment to get wood for fire so that they can cook or keep themselves warm.

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Affluence refers having plenty of money to acquire a high standard of living .

As people get rich they become greedy and demand more those with businesses keep expanding them at the cost of demolishing the environment and their businesses are usually not environmental friendly but as long as they make money that is not taken into consideration.

The problems w efface by not including the harmful environmental costs in the prices of goods and services.

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Explanation:

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