Saturday, September 1, 2018

Demand, supply, price fluctuation Mechanism

PRICE MECHANISM :
The interpedence of the market. It effects the changes in prices, supply, demand. And this price mechanism is a cycle which will be changing from time to time. Resources move towards the shortest supply where demand is more and they are away from where they are in least demand.
 Example : During festival times people of tribal areas conducts festival of honouring goddesses and they also celebrates it by installing many shops where they can find many things like bangles, cosmetics, sandles etc... As the tribal finds them more fascinating on those days they buy them where the demand of product will be high with high supply of product and prices. Whereas in regular days the price of the product will be low influencing the low deamsn, low supply and less prices.

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