Question

Expand on a product that has experienced a recent (in the past 20 years) change in...

Expand on a product that has experienced a recent (in the past 20 years) change in price. Then list either a factor of supply or demand to explain why the product experienced a change in price.

Homework Answers

Answer #1

A very good example of this would be bitcoins. Bitcoins have seen a tremendous change in price in the last one year and this has seen prices rising by over 1000%. The price rise has been mainly due to great demand for the product and this has caused the demand curve to shift rightwards continually and cause the price to rise. Thus bitcoins have been one such product that has seen such a change in the past. This has been mainly due to craze demand. Also the supply of the product is limited and this has meant that product prices have risen additionally.

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