Title: Analyze the concept of supply and demand.
Course: Fashion Marketing (8140) > Section: Understanding Economic and Marketing Concepts

Analysis should include a definition of supply and demand and an explanation of why knowledge of the interrelationship between supply and demand is critical to understanding the free enterprise system and the fashion industry. It should also contain an explanation of the effects of the following factors on supply and demand:

- Inflation
- Deflation
- Resources
- Natural and economic events
- Government intervention
- Technology
- Education
- Elastic and inelastic demand

Process/Skill Questions:

- What factors affect the interaction of supply and demand? How do these factors affect the interaction?
- How can supply and demand affect fashion marketing?
- How do supply and demand affect price in the fashion industry?
- How has the Internet had an impact on supply and demand in the fashion industry?
- How do fashion retailers and producers create demand?