Demand and Supply Experiments

Demand and supply experiments are methods used to understand how buyers and sellers interact in a market. They explore how the quantity of a product demanded by consumers varies with its price, and how much sellers are willing to produce at different prices. By changing these variables and observing the outcomes, researchers can see how factors like consumer preferences or production costs affect prices and availability. These experiments help economists predict market behavior and inform businesses and policymakers on making better decisions regarding pricing, production, and resource allocation.