Additional Examples of S and D

Ailyn Benitez Damaris Garcia Ronnie Castro

Changes in Supply and Demand

Every now and then we hear on the news that extreme weather has severely reduced the size of some crop. As severe freeze destroys a sizable portion of the lettuce crop. This implies a significant decline of supply, but at each price consumers desire as much lettuce as before, so the severe weather does not affect the demand for lettuce.

Exchange Rates

Are the prices at which one currency can be traded off for another currency.

Foreign exchange markets are used by individuals and companies that need to make purchases or payments in a different currency.

In the euro-dollar market, sometimes the demand for euros increase. Meaning that the dollar has depreciated relative to the euro, and the euro has appreciated relative to the dollar.

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