in 1995, pierre omidyar created the consumer to consumer trading company \"ebay\
ID: 1249137 • Letter: I
Question
in 1995, pierre omidyar created the consumer to consumer trading company "ebay". As everyone knows, eBay knows, eBay allows buyers and sellers from around the world to meet in an electronic market place and make trades Search engines, ratings of trading histories, and various other eBay details make trading very inexpensive. On a Supply and demand graph for, lets' say old Elvis albums, show what happens to the volume of trade, the prices to consumers, and supplies, the cost of trading, when eBay gets introduced to the market. Explain the graph you draw.Explanation / Answer
The number of consumers would go up since it would add people from anywhere where there is a computer but can't get their hands on such an album. The price could go either way, logically since the demand for an object would go up and move along the supply curve then the price would go up, but like you said before "..making trade very inexpensive" then normal consumers would sell their valuables for cheaper prices than you would usually find in a store. The supply would become more scarce, since you go from say one album for every 100 people to 1 album for every 10000 people around the world. therefore a huge increase in price could be seen, even if the consumer who is selling the valuable wants to make it affordable he will always want to make a profit. sorry i dont know how to make a graph im new
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