Market Prices and Consumer Needs

Many consumers are always in demand for goods and services, but the price variation still is a barrier towards meeting their needs (Fowler, 2015). However, some businesses sell their goods in large volumes, and in most cases, decide their prices depending on the quantity of their products. Consumer demands also depend on the location where consumption is occurring, some businesses even choose to sell depending on the geographical location in need of their products, and this explains why some areas experience scarcity of goods and services.

 In most sporting events, the quantity of tickets produced is more than the amount that the consumers will consume; this can be experienced due to factors like time, demand and price. Price is a significant factor that affects the need for supply when the tickets are priced higher than the expectations of the consumer; the chances are that most tickets won’t be sold as expected (Clotfelter,  & Rothschild, 2014). In this case, the consumer suffers because they are not financially able to purchase the tickets. For this to be solved, the tickets producers should consider setting a price that is favorable to the consumers, at the same time putting into consideration the profits they would make when they produce a higher quantity of tickets, when this is done, both the consumer and the producer would gain equally.

The price of gasoline increases due to a few factors, as stated in the supply and demand model. The law of demand and supply states that there is an inverse relationship between supply and the prices of goods when the market is unchanged (Mohd, 1989). Hence, when there is a decrease in the amount of gasoline while demand remains the same, prices tend to rise higher than the consumer expectations; as such, a low quantity of gasoline is produced. The same law also applies when demand increases and the supply remains the same, prices also go higher due to higher demand. 

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References

Clotfelter, C. T., & Rothschild, M. (2014). Studies of Supply and Demand in Higher Education.

Fowler, M. W. (2015). Democratic equilibrium: The supply and demand of democracy.

Mohd, F. M. J. (1989). A supply and demand model of fresh milk in Peninsular Malaysia. Bangi, Selangor: Fakulti Ekonomi, Universiti Kebangsaan Malaysia.