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garri49 [273]
3 years ago
10

Explain how supply and demand can affect market price.

Social Studies
1 answer:
satela [25.4K]3 years ago
8 0

Answer:

Supply is how much of the product the company has and demand is how much people want said product. The more people want of the product, the more the company will have to make in order to keep up with demands.

Explanation:

Lets use toilet paper as an example. There is a high amount of demand for toilet paper and the companies are stuggling to keep up, so there is less supply than demand. This effects the market price because since there is such a demand for toilet paper, the companies can raise the price and people will still buy it because they need it. The demand is so high, the companies can make a high profit margin off of peoples panic.

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