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| Topic: |
Business
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| Number of pages / Number of words: |
11 / 2939 |
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On the other hand, as the price of a good goes down, consumers demand more of that good and producers will reduce supply entering the market. If the price is too low demand will exceed supply and some consumers will be unable to obtain as much of that good as they would like at that price. We say that supply is rationed...
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We say that supply is rationed.
Here is an example to illustrate the law of supply and demand. For a particular weekend night, we examine the willingness of restaurants in Woodbury, NJ to supply a dinner for two and the willingness of couples to dine in Woodbury, depending on the price of the dinner...
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