Supply & Demand
In this article it went into great detail about Supply , Demand and Equilibrium of
Pokemon Cards.
The article explained how during Christmas there was a flood of Pokemon Cards to the
Market Place – the area within which buyers and sellers of a good or service interact and
engage in exchange. It stated how the Supply – set of quantities of a good or service per
unit of time that sellers would be willing to place on the market at various alternative
prices of an item or other things being equal , increase rapidly this being called a “Supply
Shock.”
It then went into details that if the market was flooded with these Pokemon cards at
Christmas the n the price value of the cards would drop. But not necessarily because of
Demand – amounts of a product that consumers are willing and able to buy at each price
in a set of possible prices at a time.
If the kids that received Pokemon for Christmas are
new to the market then there might be a shift in demand, unlike the kids that have already
been into the market with Pokemon Cards. So there could be a rise in the price or a
decrease depending on the demand.
The article illustrates greatly on the Quantity Supplied – amount of a good or service that
people are willing to sell, Quantity Demanded – amount of a good or service that people
are willing to purchase. Supply Curve – as prices rise the quantity that people are willing
to sell rises (Law of Supply). Demand Curve – as prices rise the quantity that people are
willing to buy falls (Law of Demand). Equilibrium – reached when supply equals
quantity demanded.
Economics Essays .
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