Question
When do the laws of supply and demand have less effect on prices?
when a good or service is new
when buyers search for substitutes
when sellers want to make more money
when a good or service is new
when buyers search for substitutes
when sellers want to make more money
Answers
GPT-4o mini
The laws of supply and demand have less effect on prices when a good or service is new. This is because new products often enter the market without established demand or supply dynamics, making it difficult for market forces to adjust prices immediately. Additionally, when a product is innovative or unique, consumers may be willing to pay a premium, and supply might be limited, which can distort typical supply and demand interactions.
In contrast, when buyers search for substitutes or when sellers want to make more money, the laws of supply and demand are still relevant. In the case of substitutes, increased availability or consumer interest in alternatives will typically affect demand for the original product. Similarly, sellers seeking to increase profits will respond to market signals, which reinforces the impact of supply and demand on pricing.
In contrast, when buyers search for substitutes or when sellers want to make more money, the laws of supply and demand are still relevant. In the case of substitutes, increased availability or consumer interest in alternatives will typically affect demand for the original product. Similarly, sellers seeking to increase profits will respond to market signals, which reinforces the impact of supply and demand on pricing.