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  • Essay / Elasticity of demand and supply: two characteristics of...

    This is because they are the end users and the producers aim to provide them with the goods and services they have requested. Let’s consider two items commonly used by consumers; food and clothing. Both of these products largely depend on consumer choice. This means that a consumer may prefer a certain product over another. Their choice will create a high demand in the market for that specific good, which will consequently incentivize the manufacturer to produce more to maintain balance. During the winter season, consumers will demand thick clothing to protect themselves from the cold, clothing industries fill the gap between supply and demand by producing heavy wool and canvas sweaters for the people (Gorton,