Supply and Demand - limited goods

Question

Hi! I have to hold a presentation about the Supply and Demand curve. My question is: What happens to a curve, if the goods are very limited and the demand is very high? Thank you

Answer 1

CaptainBlack said: The supply and demand curves are not generally straight lines. In the case of this question at the limiting supply the supply curve is horizontal as no increase in price corresponds to an increase in supply. Click to expand... OK I was thinking the price was the horizontal axis, the curve is vertical at the maximum supply CaptainBlack said: That should be horizontal asymptote at the maximum quantity that can be supplied Click to expand... No I was right first time price is the vertical axis supply the horizontal, the supply curve is vertical at the limiting supply. Increasing price does not then increase supply. So an increase in demand results in increased price but not supply.

Answer 2

From 2021 Oxford Academic paper "Supply and demand indices and their welfare implications" From 2009 Harvard University paper "A supply and demand model of the college admissions problem" From Encyclopedia Britannica article on supply and demand

Answer 3

Helpmewithmathspls said: Hi! I have to hold a presentation about the Supply and Demand curve. My question is: What happens to a curve, if the goods are very limited and the demand is very high? Thank you Click to expand... Murder, war ?

Answer 4

CaptainBlack said: Have you tried plotting curves to represent this situation? The supply curve has a vertical asymptote at the maximum quantity that can be supplied. Click to expand... That should be horizontal asymptote at the maximum quantity that can be supplied

Answer 5

AngleWyrm said: View attachment 44632 Click to expand... The supply and demand curves are not generally straight lines. In the case of this question at the limiting supply the supply curve is horizontal as no increase in price corresponds to an increase in supply.

Answer 6

Answer 7

Helpmewithmathspls said: Hi! I have to hold a presentation about the Supply and Demand curve. My question is: What happens to a curve, if the goods are very limited and the demand is very high? Thank you Click to expand... Have you tried plotting curves to represent this situation? The supply curve has a vertical asymptote at the maximum quantity that can be supplied.