Report on demand and supply of woolen socks
Introduction
Both charts show demand and supply curves for socks. The charts
also show what happens to supply and demand for socks as price
changes. Figure 1 presents information for May and Figure 2 shows
information for December.
The supply curve
The supply curve for both May and December is the same. When
production is low, the price does not change. For example, when
supply is low at 25 thousand pairs of socks, the price is 6 dollars per
pair. When supply increases to 70 thousand, however, the price
increases to 14 dollars per pair.
The demand curve
The charts also show that there is a relationship between demand for
socks and price. Demand rises when the price is low. In May,
demand is highest when the price is 2 dollars per pair. Demand is
lowest when the price is 22 dollars per pair.
Shift in demand
However, there is a big difference between the demand curve for
May and the demand curve for December. The equilibrium point is 8
dollars in May, but 14 dollars in December. This is because other
things can influence demand apart from price. Figure 2 shows that in
December people are willing to pay more for socks. We can therefor
say that demand for socks is affected by both price and season.
Report on demand and supply of woolen socks
Introduction
Both charts show demand and supply curves for socks. The charts
also show what happens to supply and demand for socks as price
changes. Figure 1 presents information for May and Figure 2 shows
information for December.
The supply curve
The supply curve for both May and December is the same. When
production is low, the price does not change. For example, when
supply is low at 25 thousand pairs of socks, the price is 6 dollars per
pair. When supply increases to 70 thousand, however, the price
increases to 14 dollars per pair.
The demand curve
The charts also show that there is a relationship between demand for
socks and price. Demand rises when the price is low. In May,
demand is highest when the price is 2 dollars per pair. Demand is
lowest when the price is 22 dollars per pair.
Shift in demand
However, there is a big difference between the demand curve for
May and the demand curve for December. The equilibrium point is 8
dollars in May, but 14 dollars in December. This is because other
things can influence demand apart from price. Figure 2 shows that in
December people are willing to pay more for socks. We can therefor
say that demand for socks is affected by both price and season.
Report on demand and supply of woolen socks
Introduction
Both charts show demand and supply curves for socks. The charts
also show what happens to supply and demand for socks as price
changes. Figure 1 presents information for May and Figure 2 show
information for December.
The supply curve
The supply curve for both May and December is the same. When
production is low, the price does not change. For example, when
supply is low at 25 thousand pairs of socks, the price is 6 dollars
per pair. When supply increases to 70 thousand, however, the pric
increases to 14 dollars per pair.
The demand curve
The charts also show that there is a relationship between demand
for socks and price. Demand rises when the price is low. In May,
demand is highest when the price is 2 dollars per pair. Demand is
lowest when the price is 22 dollars per pair.
Shift in demand
However, there is a big difference between the demand curve for
May and the demand curve for December. The equilibrium point i
8 dollars in May, but 14 dollars in December. This is because othe
things can influence demand apart from price. Figure 2 shows that
in December people are willing to pay more for socks. We can
therefor say that demand for socks is affected by both price and
season.
Report on demand and supply of woolen socks
Introduction
Both charts show demand and supply curves for socks. The charts
also show what happens to supply and demand for socks as price
changes. Figure 1 presents information for May and Figure 2 show
information for December.
The supply curve
The supply curve for both May and December is the same. When
production is low, the price does not change. For example, when
supply is low at 25 thousand pairs of socks, the price is 6 dollars
per pair. When supply increases to 70 thousand, however, the pric
increases to 14 dollars per pair.
The demand curve
The charts also show that there is a relationship between demand
for socks and price. Demand rises when the price is low. In May,
demand is highest when the price is 2 dollars per pair. Demand is
lowest when the price is 22 dollars per pair.
Shift in demand
However, there is a big difference between the demand curve for
May and the demand curve for December. The equilibrium point i
8 dollars in May, but 14 dollars in December. This is because othe
things can influence demand apart from price. Figure 2 shows that
in December people are willing to pay more for socks. We can
therefor say that demand for socks is affected by both price and
season.