Question

WILL FAN AND MEDAL
FRQ TIME !
Normally, whenever a new video game console comes out, there is a shortage all over the United States. Graphically illustrate and fully explain where the shortage comes from, how the various roles of prices can come together to end the shortage, and why the final outcome is not necessarily the fairest outcome.

Answer 1

need a short explanation and what i'm suppose to be graphing (like points and what not)

Answer 2

@Serenity74

Answer 3

@mathmale @mathstudent55

Answer 4

@tom982

Answer 5

is this economics, i initially just thought of those old supply demand graphs, and shifts of those things

Answer 6

its microeconomics

Answer 7

the cross was the equilibrium price, that changes when you shift supply or demand

Answer 8

li think, that was like 10 yrs ago

Answer 9

I'll give you a few pointers to help you get started.
There are several different variables involved here: the price of the new game, the demand of consumers for this game, and time. Things change over time.

What do you think will happen to the price over time?
What do you think will happen to the quantity of games available after time?

I haven't taken economics myself, so my questions and input here are based primarily upon common sense.

Answer 10

it is new and high demand for the thing

like fallout 4

Answer 11

the price over time will devalue, and the supplier will offer discounts slashing the price. This will limit the quantity because the supplier will stop producing that console and evolve with technology while collecting revenue.

Answer 12

so the high demand creates a limited supply?

Answer 13

is a 'shortage' any value under the normal sup/demand intersection?for the units and the price

Answer 14

ok, ill quit, i just remember those dang sup/dem curvs and changing things 1 or both

Answer 15

ugh this is so confusing !

Answer 16

constant supply, demand increases at release, the demand will shift up

Answer 17

so a shortage creates a panic among consumers and the supplier can jack up prices
?

Answer 18

the supplier makes more money because of the shortage right?

Answer 19

supply will increase probably right, and the demand will decrease down the road

Answer 20

that would be normal supply and demand, with the equilibrium price there at items,$$ intersection point