posted by Amanda on .
Explain the difference in prices for each of the following pairs of goods in terms of the laws of supply and demand: (a) natural diamonds and zircons (human-made diamonds), (b) a loaf of bread baked today compared with day-old bread, (c) roses in January and roses in June.
That's my answer and I tried but I know it's not right I just don't get it..
A. So with the law of demand people would mostly go for zircons they will be a lot cheaper and the law of supply the diamonds will cost more.
Natural Diamonds have inelastic supply as the Diamonds cannot be produced by man according to tAN Che Demand
Zircons will have relatively elastic supply as it can be changed according to the demand
Old bread will have inelastic supply as the supply is already over and it cannot be produced to day
To Day baked bread will have relatively elastic supply as it can be changed according to demand
Regarding roses will have relatively elastic supply as the supply can be changed according to demand (INDI AN CONDITION) and in elastic supply during june as the weather does not permit the roses to be grown according to the demand