linara asked in Social ScienceEconomics · 4 weeks ago

Can someone explain pricing based on the supply and demand?

3 Answers

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  • Zirp
    Lv 7
    4 weeks ago

    Sure. When you have a monopoly and there's enough of whatever you sell for everybody, you can destroy half and sell the other half for 10 times as much.

  • Oiy
    Lv 5
    4 weeks ago

    The demand will be equal to supply to do the pricing. There will be more pricing such as dual, forward, historic, value-based, geographical or customer-driven.

  • 4 weeks ago

    Pretty simple.

    Discounting all other factors leading to supply and demand, producers of supply tend to make more supply when they can get more money from what they produce. And on the flip side, buyers tend to buy more things when the price of those things is lower.

    So the producers are looking for higher prices and the buyers are looking of lower prices. And over time the producer price and the buyer price converge onto the same price. And that agreed on price is the market price, the price that both the producer and the buyer operate. We say that supply meets the demand at that agreed on price.

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