Question

Problem 3c

Answer 1

Introduction

Demand and supply of a commodity are affected by a number of factors. Sometimes due to the occurrence or in anticipation of some future event the demand and supply of a product may get affected.

• Such events may induce consumers to buy a particular product or make them refrain from using the product, affecting the demand accordingly.
• Similarly, suppliers may also be induced to supply more or less as the case may be affecting the supply accordingly.