Answer to Question #268446 in Economics for Pea

Question

How do different microeconomics market structures affect supply and demand

Answer 1

The market structure affects the supply and demand for different commodities in the market. When the competition is high there is a high supply of commodity as different companies try to dominate the markets and it also creates barriers to entry for the companies that intend to join that market. As the supply is high, average prices decrease. So that there's a possibility for consumers to increase their consumption (demand).