The Price Of A Good Or Service

709 Words3 Pages
Recently, Brazil has been expecting an increase in the amount of rainfall, after serval years of drought. This will cause an increase in the supply of coffee made in Brazil, “the coffee- growing capital of the world.” Supply is the amount of a good or service that a company produces based on what they are willing and able to offer for sale at any possible price during a given amount of time. An increase in supply will cause an increase in quantity and a decrease in the price, as the law of demand states. The law of demand states that as the price of a good or service that producers are willing and able to offer for sale during a certain period of time period rises (or falls), the quantity of that good or service supplied rises (or falls). Demand is the quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time. Supply is total amount of a specific good or service that is available to consumers. Where these two meets up on the graph is known as the equilibrium. Equilibrium price is the price at which the quantity demanded by b...
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