You know, the demand is what the people ask for, and the supply is how much the organizations or firms in the private market are able to deliver of products, when we have the products as we have in the markets.
You know, the product is the most important in the markets. And the better the market, the more available are the products that are sold, and all sales organizations can do their sales in relation to what is happening everywhere at any times. So you know, sales, marketing, advertising, economics strategy and information are always important to analyze all the moves that all possible actors are doing in the markets. And the demand is to ask for something in relation to your needs, and the supply is what to deliver from firms in the private markets.
Economists have to say supply and demand like the parrot, and therefore everyone can be an economist as the earlier professor Paul Samuelson by MIT was telling us. The demand is telling us that the scarcity of the product in question. And when there is much of the product in the markets, there is a low price, and than the little there is of the product, the higher is the demand, and that is something that many economists, also market economists, are telling us about. And there can be positive or negative shifts in the demand curve. And when there are positive shifts in the demand, the more demand we get for every price, and the easier there is to get more demand for every price and the quantity that is sold. And there is a negative shift in the market, there is lower demand on every price that we are facing. The demand curve is shifting in positive ways if the price on substitutes is increasing. And if the competitive products have increases in their prices, the prices on the product one is analyzing is making more demand for each possible price and quantity. And if the prices on the complementary products are increasing, the lower the demand is on every level for the prices and the quanitities in the markets. So, that is a negative shift in the demand. And we are having shifts in the demand, positive or negative, when something external to the markets is making changes in their ways of doing and operating things, and therefore we are having positive or negative shifts in the demand. And when the income and the preferences are even better, the more demand we find, and the lower the income and the worse the preferences, the less demand we find in the markets.
The supply of products in the markets is due to that profit we can make in the markets, and the higher the prices, the more profitability one can make about selling the product in the markets. And therefore we find higher supply when higher prices, and lower supply when lower prices. And the supply is rising for higher prices, and the supply is falling for higher prices, and therefore we can find more variations and more products in the markets, the higher prices there are. And the higher prices, the more and the easier it is to cover the costs, in the firms and in the markets. And surprisingly, there are problems with getting people to understand the demand and the supply, and this is the most fundamental issues of any kinds of products that are offering in the markets.
So, there are different causes when the supply curve is shifting in negative ways and in positive ways. When the costs are higher, there are less supply for the same prices, and therefore the supply curve is shifting upward, and there is less supply to the customers and to the potential supply to the customers. And when there is less costs, there is positive shift in the supply with higher quantity offered to each prices, and this is related to what the supply curve is doing, when showing what the market can offer with prices and quantities. When the prices on substitutes are increasing, there is positive shift for the product, and when there is decreasing prices on substitutes, there is negative shift for the product in question. And when there is increasing prices on complementarities, there are poisitve shift on the product, and when there is decreasing prices on complementarities, the more the supply will be for the actual and relevant product when we are analyzing. And when there is better incomes and better prefences, the more things are offered, and the lower the incomes and the worse the preferances, the less quantities are offered in the markets.
And maybe, we can find other forces we are facing in the markets than what we have analyzed today, and the ordinary things are prices and quantities in the markets, but there can be external variables and parameters around these internal forces and effects.
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Sverre Larsen
Kristiansand, Norway
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