Question

What is an example of supply and demand?

Answer 1

The examples of supply and demand can be understood with the following examples

1. There is an abundance of mangoes in the summer season which is much more than the demand, therefore the farmers need to reduce the price of the mango in order to clear their stock.

As demand is less than the supply, price reduces dramatically.

2. Due to drought there is less production of mangoes during summer, but the demand of mango is high as most of the people want to eat mango. As supply is lesser than the demand, prices will rise dramatically.

Also read:

• Price Elasticity of Supply
• Market Supply Curve
• Market Equilibrium Applications
• Features of Indifference Curve
• Market Equilibrium

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