ECO 561 Supply and Demand Power Supply Boards: Supply and Demand

Eco/561

Introduction

The aftermarket of electronic repair parts offers easy entry into the market and produces a large demand from its customer base. Although there are many people who refurbish, the supply of certain replacement parts is overwhelmed by its demand, creating a deficit between the demand and quantity supplied. All successful businesses use supply and demand to determine what quantity to produce and what price to sell each unit at. Just about anything a business needs to know about profit, price, and quantity can be determined if it calculates its marginal costs and marginal revenues. Marginal cost and marginal revenue will also be used to determine what kind of profit can be expected at a given price....