Question about demand and supply.?

2015-01-11 11:14 am

I got 2 statements refer to demand and supply, but I don't understand why they are correct.

1. The demand of cars increase, therefore the price of cars went up.
2. The supply of cars increased, and therefore the price of cars fell.

Can anyone explain why these 2 statements are correct? Thanks so much.

更新1:

** If using the supply and demand model to explain it, why the 2 statements are correct usages of supply and demand model?

回答 (1)

[匿名]

2015-01-11 11:17 am

1. People wanted cars more, so people were willing to pay more, therefore the companies could charge more.

2. There were more cars available on the market, so they were very easy to get hold of, so people wouldn't pay as much for them, therefore the companies had to lower the price.

Hope this helps and isn't too confusing!

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