The demand and supply schedules for flying disks are shown in the table below.
Column one: the number of flying disks in stock, column two:
Demand for flying disks, column three: price charged by suppliers per unit.
A recent study found that the supply and demand schedules for flying disk are as follows:
The table below shows a summary of the hypothetical data on which we will base our analysis.
When there are only 12 units left in stock since they would then sell all their inventoryā€¯.
However, these descriptions do not provide enough information to fully understand what is happening with this market so let’s dig into the numbers and see what’s happening.
Column one: the number of flying disks in stock, column two: demand for flying disk, column three: price charged by suppliers per unit.
The study found that when there are 12 or more units in stock, then the supply equals demand at $0.75 a piece.
But with fewer than 12 units available to sell (for example if there were only one left).
Then prices would rise up over $0.99 because competition among suppliers is fierce.
Prices will stabilize around $0.80 until new supplies arrive on the market place.