The interaction between supply and demand establishes the operation of the economical market. In order to have market equilibrium the quantity of the supplies must equal the demanded quantity. Considering that there are several markets within our economy to base equilibrium with supply and demand. Consumers and producer react differently when there’s a price change. Higher price tend reduce the demand while uplifting supply, and lower prices raise the demand while decreasing supply. There’s a strategy within the free market that states that one price can bring demand and supply together according to economic theory.
For example, I am a sprint customer and I was upset with my current bill. After finding out that my friend pays ten dollars less than me, but we have the same plan i was determine to call sprint to receive an adequate answer. The man asked me different questions as to when did I buy my phone, what season of the year was it in, and was it a new phone launch when I brought my phone? As I started to think to myself I brought my phone in the middle of spring when the iphone 4s was launchings, which put sprint in a position to raise their bill cost and decrease the price for the phone so that they can make a profit for their business. The supply and demand curve affected sprints market equilibrium by the needs and wants for phones because newer phones came with a special causing the service bill to increase.
The law of demand occurs when there’s a negative or inverse relationship between price and quaintly demand (cite book). Therefore, sprint knows that during certain seasons the wants for phones are down, so they lower their prices. The demand determinates that affect phone purchasing from sprint are the prices, new phone premieres, and the area of coverage. During this time it could leave Sprint a surplus of phones and data plans because other