The Law of Supply and Demand is a big idea that affects how prices and amounts of things work in different markets. Here are some important points to understand:
Competitive Markets: In a competitive market, the price settles when the amount of something sold matches the amount people want to buy. For example, in the housing market in the U.S., if demand goes up by 5%, prices can jump by 15%.
Labor Market: There has been a big increase in the need for skilled workers in technology. From 2020 to 2021, job listings went up by 37%, and this demand caused average wages to rise by 10%.
Commodity Markets: In 2021, oil prices increased a lot because more people wanted oil after the pandemic. Prices went up to $75 per barrel, showing how outside factors can change the normal balance.
These changes have a big impact on the economy in all areas.
The Law of Supply and Demand is a big idea that affects how prices and amounts of things work in different markets. Here are some important points to understand:
Competitive Markets: In a competitive market, the price settles when the amount of something sold matches the amount people want to buy. For example, in the housing market in the U.S., if demand goes up by 5%, prices can jump by 15%.
Labor Market: There has been a big increase in the need for skilled workers in technology. From 2020 to 2021, job listings went up by 37%, and this demand caused average wages to rise by 10%.
Commodity Markets: In 2021, oil prices increased a lot because more people wanted oil after the pandemic. Prices went up to $75 per barrel, showing how outside factors can change the normal balance.
These changes have a big impact on the economy in all areas.