Written by V R Sunday, 07 November 2010 06:47
- The first factor affecting prices is a demand and the second factor that affects price is supply.
- By the supply of a commodity is meant the quantity that is called forth into the market-over a particular period of time by a certain price.
- Just as demand is not the same as need,and implies effective demand or demand at a price so it is with supply.
- The supply of a commodity does not comprise the entire stock of it in existence,but only that amount drawn into the market by the price ruling at the time.
- Supply demands upon scarcity,just as demand depends on usefulness.
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