Explain 5 constraints to demand and supply

      

Explain 5 constraints to demand and supply.

  

Answers


Caroline
1. income- when someone's income increase purchase power increase when income decrease purchase also decrease.
2. availability of credit- where there is credit facilities demand is higher which leads to high supply. where there is no credit, demand lowers also supply.
3. price fluctuations- when price increase demand drops also supply goes down, when price drops demand increase and supply also goes up.
4. availability of alternative or competition - where there is alternative product, there is competition price goes down rising demand and supply.
5. government policy, government can subsidize production this lower price and increase demand and supply, where there is subsidy price is high demand low supply also low.

mwalimu caroline answered the question on March 22, 2019 at 07:52


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