Question

Explain the law of demand to a recent purchase that you have made. Analyze a recent price change of a product that you have experienced and determine whether it was a supply or demand factor that impacted the price change. Explain your reasoning.

Answer 1

Answer: The cost of milk.

Step-by-step explanation:

I can remember as a child the cost if milk being a little over a dollar. Now, the price of milk has inflated to after five(5) dollars... However, the demand for milk is ever increasing. Consumers will still buy the milk because it may be essential to their every day daily lives. Regardless of the price the demand for milk is a key factor to the supply, or lack there of. The demand assists in the inflation because consumers have the need. The supplier can attach whatever monetary value to it, also long as there is always a willing and able consumer to pay.