Supply dood

The law of supply follows a curve that is exactly opposite of the demand curve. So it like basically says that like the higher the price, the more of a product that the suppliers are willing to supply. The law os supply can also be described as a change in supply at each and every price. The law of supply depends on price fluctuations that can be caused by changes in cost of inputs, productivity, technology, taxes and subsidies, expectations, government regulations, and number of sellers. The supply curve, much like the demand curve can shift inwards and outwards based on changes in each of these. Additionally, just as the demand can have both elasticity and inelasticity, supply can as well. An example of elastic supply is how tshirt companies are making tshirts for both teams in the world series, expecting a win, yet they will still be able to make more to follow consumers demand (depending on which team wins) within a short period of time. In contrast, an example of inelastic supply can be the current situation we are facing because the destruction of pumpkins on the east coast will not be able to supply enough pumpkins for halloween, and the price has increased. The price of a product can dramatically change the suppliers willingness to provide their product for stores, depending on their profit. For instance, if most t-shirts are selling for 5 dollars, few suppliers will be motivated to provide their product at such a low price; furthermore, if tshirts were selling at 15 dollars, the suppliers profit margin would increase, and they will be willing to provide a lot more tshirts to stores in hope of making a larger profit.

DEMAND PARTY TIME!

So demand is, like, totally, like awesome, bro.

Obviously we all experience demand in our lives, but understanding the significance of it and how it affects us everyday is important so we can all be SOOO COOL 24/7!! Before I was in a tubular econ class with some McManamon dude I learned about demand in Intro to bidness freshman year. I found that demand determines the price of goods and services in accordance with the desires of the consumers. In order for bidnesses to get beacoup bucks, they need to change their products, prices, advertising, etc. to meet the demands of their customers.

What i didn't know was that demand can be represented on DEMAND CURVES, bro!! So economic and bidness majors can predict how the changes in price affects our willingness to buy. It's outta this world crazy. It's almost like they know what we're going to do! But realistically, its only a estimate. Depending on the product, it can either be elastic or inelastic. So what does that all mean? Is it like a rubber band, man? Well, when consumers don't see the products as necessary for everyday life, like candy, icecream, and souvenirs, they are less likely or more likely to buy the product based on price fluctuations. So if the price of oreos skyrockets, sales will suffer because consumers are less likely to buy them at such high prices, and if the price plummets, then the profit margin will increase because sales will go up. On the flip side, inelastic demand involves products that most consumers see as a high priority or necessary for daily life, and regardless of the price they will buy it. Some examples of that are gasoline, milk, and staple food products. When prices go up, the bidnesses make more moolah because peeps will still buy the products, and vice versa when the prices go down. The demand curve can potentially shift when the conditions of demand changes, such as a larger population, a greater demand of complementary products, and new trends or fads. Complementary products can affect an increase and decrease in demand of products and services when one good affects another, because consumers tend to purchase the goods and services in pairs. Some examples of these are when prices at disneyland increase greatly, nearby hotels will also suffer because the demand for both product decreases.

So basically demand affects us erry day and the more we know, the more you know, you know?