Supply Reflection

We learned this week all the wonders of supply. Supply is the other part of demand and judges how much the supplier is willing to supply for at a current price. Naturally, the supplier would want to sell a product at a higher price, but a consumer would want to buy a product at a lower price. So if you put the curves of both of them together, you get the price that people would actually buy them at if they were also supplied at that price. This is fundamental to how a product is produced, marketed, and sold.

I apologise for the late post. The Internet at the hotel was choppy at best. Thank you for understanding. 

Supply and Demand Reflection

In any modern Economy, there will be want for a product and then there will be the product itself. I might have the want (demand) for a pie, but if there are only a few places to get pies (lack of supply) then I would pay more for a pie than I would otherwise if there were more pies (more supply). Getting the Pi day reference out of the way, Supply and Demand is crucial to any economy. Without either, it is hard to have an economy since either nobody is providing or nobody is buying causing stagnation in the economy.

Supply is interesting as it is the most judged by physical limitations. We only have so many gallons of oil and therefore supply is limited for it. But, we may have a nearly infinite demand of oil so long as there are vehicles or goods that require oil to run. That is why people are slowly integrating sustainable energy into the energy market as you could have a theoretical infinite supply of solar energy or wind energy.

Demand is what really drives the need for a supply of an item. A lack of demand will lead to a lack of supply. If nobody wants the previous generation of phones, then nobody will buy them and production of them will grind to a halt. So demand is necessary for a product to be successful.

A reflection on Demand

Supply and demand are integral parts of any economy, and no less so to our national economy. Being a market economy, supply and demand is determined from the consumer base and not by a government. The greatest part of supply and demand is the numbers behind it. Seeing all the graphs and number charts really cause you to step back and look at how truly huge and intertwined it is. If steel became an incredibly expensive item, then many industries would suffer from a lack in this incredibly widely used metal. Stocks would fall and almost every aspect of life would be changed if steel became rarer.

What goods or services do you think that could lead to a massive chain reaction in the economy? What aspects of life do you think would affected by this good or service being changed from the norm?