Demand and supply directly and indirectly related.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance. Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

I want to add something about how we can benefit from this relationship as individuals.
As individuals, we can harness the power of supply and demand for profit by understanding market needs and taking calculated risks. This can involve identifying and catering to unmet needs, anticipating and capitalizing on fluctuating demand, acting as a middleman connecting buyers and sellers, or developing high-demand skills and knowledge. Remember, thorough research, strong networks, adaptability, and ethical practices are key ingredients for success in this dynamic landscape Grin

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Quote from: SatoPrincess on January 18, 2024, 02:23:49 PM

Is there a question here? The law of demand and supply is an economic theory that has existed for ages. Market prices are determined by this theory. If the demand of a goods or service exceeds the supply, prices will rise. And if supply is more than the demand, prices will fall. That is to say scarcity creates demand and increases prices of the product.

The theory of supply and demand took us a long time to get it right but once we did it allowed us to understand more clearly the market dynamics, so I would say that it is not much of a theory but more of a confirmed fact, so we know there is a direct relationship between the supply and the demand, as if the price of a product is high due to a low supply then businesses will do what they can to supply that product so they can sell it for such a high price, but as the supply increases the price falls as the demand for the product is met.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance. Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

This is one of the basic theories of economics, you are postulations doesn't connote that you are asking a question or you are explaining the theory of demand and supply. However the theory of demand and supply has a lot of explanations about prices and the overview of commodity and Market capitalization.
It explains that demand and supply is controlled by market forces, this forces are either responsible for scarcity of goods and sometimes high level of production and supply of goods depending on which side the market forces wanted it to go. It also explains that sometimes artificial scarcity can be created by marketers in a bit to hike the prices of goods because hence there is shortage of supply of a particular goods or product, that product becomes a scarce commodity and the demand becomes high.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance. Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

Of course it has direct relation to each other because the absence of one of them means businesses won't work well. This works well with businesses rather than organizations I think.

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About demand and supply this is the major item and these are also interrelated and have a relationship and are interrelated, of course with the products we will invest in, meaning we also have to see and be good at reading where things are going, such as changes in consumer tastes, market trends, or also changes in the political climate and economy at that time. I'm sure it will be easier for us to navigate the market later or for anyone who wants to invest, especially those who are still beginners. Nice statement from you above.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance. Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

You should have given more insights and examples into your analyzing of demand and supply so we can understand better from the perspective that you're coming from. Anyways it's the supply and demand for goods and services that determines their prices in the market, if supply is greater than demand, then price will fall, likewise if demand is greater than supply then price will increase, this will continue until when demand and supply will settle at an equilibrium price. This is the basic economics concept that drives the market behavior and performance like you said. The concept also drives competition among producers of goods of close substitutes, if the price of one product is high in price, consumers will want want switch to another brand that produces similar product at a cheaper price. In the end it's the demand from consumers and the availability from suppliers that determines market price.

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This is accurate phenomenon that supply and demand is directly or indirectly related to the success of the market because we can see that if the demand for certain materials increases then supply will reduces which will eventually cause the price of that material to go more higher.

It can be clear with the example that if there is a greater trend of anything in our society then everyone will be in desire to get that due to which such thing will be limited in number so if owner cannot provide such materials to everyone then the price gets increases in market as unique thing possess higher worth.

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Well i think everyone in the economics or finance community know this actually maybe even people with no educational background do understand this that is why they know how one’s product’s worth can be determined depending on the demand and its supply

Psychological behaviors is also something to consider when encountering with market forces

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Well demand increases supply because if there is no demand then there will definitely not be any supply because you can't actually supply what people don't want but in trading, when there is a higher demand for an asset, the value tends to increase as much people are interested in the asset thereby making it to be scarce because as soon as the supply have been made, a lot of people rush in other to acquire it, by so doing that's how scarce it's gonna be.

Sometimes, the reasons why an asset increases in it's value is also as a result of hype maybe from influencial people and since the public always follows up anything that's trending, people would also want to be part of what is trending so that they also can take part in it so as soon as people are making efforts to acquire the asset that's how the price will also skyrocket as well.

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I don't know what you want to ask, but in buying and selling the main thing is that supply and demand are things that will always be discussed in any business or sale, including the crypto market.

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Quote from: SatoPrincess on January 18, 2024, 02:23:49 PM

Is there a question here? The law of demand and supply is an economic theory that has existed for ages. Market prices are determined by this theory. If the demand of a goods or service exceeds the supply, prices will rise. And if supply is more than the demand, prices will fall. That is to say scarcity creates demand and increases prices of the product.

Don't you think this would lead to elasticity of price and demand? Personally when a product or Goods is in higher demand against the supply it causes a scarcity of Goods hence making the good unaffordable for consumers and wholesaler and retailers. When a good is out of stocks then it calls for automatic low in supply where the purchase or demanding power won't be accommodated any longer, if is a company it would create additional job opportunity for the job seeker to suit the demanding power where the supply will increase exponentially for increasing in labor work force.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance.

They have always been directly related, because they are the direct opposite of each other, and need each other to exist.

Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

For any business owner who does not understand what is on demand so that they can position themselves in a way to supply to the market and meet these needs, they would be supplying goods and products to the market that is not needed at that point and then end up recording poor sales. If a business owner does not know how to conduct a proper market research to understand what is in demand, he should hire the services of people who can do it well.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance. Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

The usual law of demand and supply that we know will have some contradiction to this but your statement on the the relationship between supply and demand being direct and indirectly proportional can be misleading but it actual says the truth when illustrated in a production company. They know how to beat this law of demand and supply to work for them, they will call it business sustainability or business management in some companies, but the main aim is to keep the customers no matter the changes made to the price of the products.

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Regards to the direct and indirect relationship of both as it affects a manufacturing company, they understand that the consumer will go for cheaper products where the price of a particular product is high and it will affect the supply of that particular high priced goods as demand will shift for alternative cheaper goods and that is why when they announce price increase for a particular goods they immediately start the production of an alternative either in quality or worse they produce smaller size of the product with same value. They do this not to allow their customers move to another totally different brand.

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i will be honest that these kind of thing, saying that demand and supply have direct and indirect relation is just confusing for most of people, i think we should just go with the usually law of supply and demand where if the demand is high and the supply is low then the price would increae, same thing with the opposite, but here's the thing, how to figure out if the demand is high? i mean we can know roughly from the buy order but with thing like stock and crypto, buy order change dynamically, sometime the buy order could be low but the price still climbing up anyway.
everything is so abstract and hard to understand with trading and investing in form of stock and crypto.
thats why many people fail to figure out the key of trading and investing, because everything is so abstract and dynamic.

while all these economic law that exist does indeed help to understand roughly about the current circumstance of the market, doesn't mean they are that useful.

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This is fundamental in economic terms. And the greater the demand, the higher the price of the product. Likewise with what is happening at the moment, when we talk about food and energy prices. Which is skyrocketing day by day, which is due to limited availability, but demand is increasing day by day.

However, when we shift to another sector, for example you are an entrepreneur in the confectionery sector. So believe it or not, consumers don't need your goods, because when it comes to businesses in the clothing sector, there are already so many of them that perhaps one company alone can produce hundreds or even thousands every day. This creates quite tight competition with competitors, so that the clothes you produce can be sold on the market, the clothes you produce must have bargaining power, the clothes you produce must have excellence and good quality, especially in terms of marketing, then you You have to make advertisements that are as attractive as possible so that consumers will feel interested in buying your product.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance.

There's a topic about law of supply and demand, they're always directly related. It is much better if you can give some ideas as to why it is sometimes indirectly related. Because with what I've learned in my school days, they're always together and if they don't. Please explain or give some scenarios on how they become like that.

Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

Actually, it is not just for organizations. But it's also applicable to individuals when you're doing some sales or simply watching the market out for specific products. We can simply apply with the crypto market where it is directly proportional.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance. Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

In terms of optimizing performance and competitiveness for anything, thorough research and analysis is always needed so that we can find out our own strengths and also the strengths of current competitors. This means that in any case, as long as it is related to the economy and a particular business, it is clear that there will always be competition through each other's performance so that everyone needs to get development through supply and demand, which has become the basic foundation for all businesses today.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Understanding this is crucial for organizations seeking to optimize operations and competitiveness.

It is matters the ability to apply it to the field in which they are working. These things are quite basic because most of them, if they learn through finance and economics courses, will understand the reasons and operations.

There's no need to get too complicated with the basic problem, because for everything else around it it seems to be a deciding factor in execution.

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Quote from: Shyla1 on January 18, 2024, 12:16:01 PM

Demand and supply can have a direct or indirect relationship, affecting market behaviour and performance. Understanding this is crucial for organizations seeking to optimize operations and competitiveness. Thorough research and analysis are necessary to gain the insights needed.

This is the most basic and easy thing that we all should know about before coming into the crypto market, whether we are trading or not, one of my relatives is taking part in airdrops and he has been joining some apps like Avive and ice from long time, but when he received them into his wallets he was shocked to see the ups and downs of the price movement, he said they were $20 first day now they sit at $8 only what is happening how this all happened.

Then I used the Demand and supply factor to teach him about the price differentiation, I know D&S is not the only factor that drives the price but still while teaching a normie we should take the easiest factor into mind and start from them too. The point is Demand and supply do have direct or indirect relation and we can't disagree with that even if we want to.

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