I am having a horrible time coming up with an example of the "law of supply." Any suggestions would be helpful.
Think of the newest gadgets or the hottest new toy. Their prices start high but later come down.
http://www.examplesof.com/business/law_of_supply.html
Thank you so much!!
You're very welcome.
Certainly! The law of supply states that, all else being equal, the quantity supplied of a good or service increases as its price rises, and decreases as its price falls. Here's a suggestion to help you understand and give an example of the law of supply:
1. Choose a specific product: Let's say we choose apples as our example.
2. Determine the price and quantity relationship: Start by assuming a scenario where the price of apples increases. According to the law of supply, we expect the quantity supplied to increase as well.
3. Gather information: Research the apple market and find data on different prices and quantities supplied. This can be acquired from various sources such as agricultural reports, grocery store records, or government databases.
4. Analyze the data: Examine the relationship between price and quantity supplied. Look for instances where the price of apples increased, and see if the quantity supplied also increased.
5. Create an example: Based on your analysis, you can now create an example that demonstrates the law of supply. For instance, you could say that when the price of apples increased from $1 to $2 per pound, apple farmers in a specific region increased their supply from 1,000 pounds to 2,000 pounds per week.
Remember, the law of supply is a general concept, and real-world markets can be influenced by various factors. However, by analyzing data and observing price-quantity relationships, you can easily find examples that illustrate the law of supply.