Supply and Demand

The law of supply and demand always lies at the heart of the economy and at the deepest level of human relations.All these things determine the interaction of these two powers,prices of products at stores,a profit of company and while one family becomes rich the other one becomes poor.

           The law of supply and demand,why supermarkets sells high quality whiskey, according to ordinary brand of whiskey so expensive, computer companies's,for only changed colors of notebooks,explains why extra money is demanded.Like some basic equations in Math and Physics, the relation of between in supply and demand it can be seen in every field.

           This law,it is everywhere up to the in Ecuador,Otavalo's crowded streets, in New York,Wall Street's wide streets.Beside some superficial differeneces, there is too many farmers in South America,those in Manhattan they are Financier- for Radical Economists for these two places it is almost identical.If you look a little closer you will see why it is the identical:They are both big market.Otavalo,Latin America's the most biggest and the most famous marketplace; Wall Street is harbouring New York Stock Exchange place.Both of in, people buy and sell somethings.

           Whether it is the market stand where the products are physically sold,whether the virtual market,most of the made up of trade on computer networks like Wall Street, markets , it put together buyer and seller.The price is intersection of supply and demand point too.These there innocent-seen fact,it says much things to us about society and it creates the Basic Marketing Economy.

           Demand,it expresses people's quantity of product or service to be willing to buy a certain price from seller.As the price increases,it wants to take fewer people ,it will continue until it refused.Supply in the same way,it expresses a seller's quantity of product or service to be willing to sell a certain price.The price how low,the seller wants to sell so little goods,because they spent a certain money and time.

          Price,is a sign that supply and demand for a good is rising or falling.The secret of the economy is not very secret, in fact, prices are never fully balanced.All year Rose prices are always rise and fall:When it is passed from summer to winter,Florists will must bring roses from farther away;rose's supply falls,prices rises.At the same time we can give and example like Valentine's Day.Economists describe this situation as ''Seasonality.'' Some of Economists beyond this fluctuation, they try to find balance price.

           In some prices,we can find importants results about people.A few years ago,computer producer Apple,they drove Macbook notebooks to the market.Macbooks were produced in two different colors and black one was more expensive than white.Although, other systematic hardwares same, if someone want to buy the black one,they have to pay $ 200 more.Although, sales were succesfull.Could not be sold if there was not enough demand.

          Elasticity,sometime it takes time to respond into supply and demand prices changes.A Mobile Phone Company,when they increase call tariffs,Subscribers start calling less often or change the company.In Economy we call it as price elasticity of demand.So demand,it changes with in price changes.In some cases, there is a delay in response to cost increase - in this situation there is no price elasticity of demand or inelastic.For instance,when oil prices rise,consumers could not found alternative to buy oil.Some of the consumers started to use public transport.That kind of alternatives, in which cheap alternatives are preferred rather than expensive products,it is defined as substitution effect.

        We can say same things to Demand too.It is possible for Demand Elasticity.As the demand for products decreases,workers are cut off from work or the company ceases to invests.