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Advantages And Disadvantages Of Demand And Demand

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Surge pricing is a logical response to technological innovation and excess demand.

Introduction
Supply and demand is the backbone of a market economy and is one of most models of fundamental concepts of economics. Demand refers to quantity of products or service that is desired by buyers in a market. And a quantity demanded is the amount of a product that customers are willing to purchase at a certain price. A well known relationship between price and quantity demanded is a demand relationship. Supply refers to how much the market could offer for the products or service demanded. The supply of quantity refers to the amount of a certain goods that producers are willing to supply at a certain price. Therefore, the correlation between prices and a product or service supplied to a market is known as the supply relationship. In general, the reflection of …show more content…

It makes the price around the market value or fluctuation of production price. In the long term, the market price need adjustment with market supply and demand balance and imbalance, adjustment of production factors inflow or outflow. Secondly, the short-term supply and demand of market determines the market price to deviates from the market value or the direction and extent of the production price. In general, market demand and market prices are often higher than the market value or production price. In market oversupply, the market price is often lower than the market value or production price. However, the relationship between market supply and demand determines the market price deviation from the market value or the degree of production price. Finally, the long-term supply and demand directly affect the market value or the formation of the price of products. And it is affecting the value of the market. In general, a long-term supply of rare and in short supply is in the main form of long-term supply and

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