Understanding Supply and Demand
There is a never ending debate in economics. Does demand follow supply, or does supply follow demand? If you ask me, they both take turns following each other. It’s somewhat like Tango, you never really know who is leading.
An increased supply increases exposure in the market. The combination of supply and exposure leads to sales. Every professional salesman knows sales is a numbers game. From any number of leads, a certain percentage will make a purchase. With enough exposure we can sale anything, regardless of its price or value.
In capitalistic countries such as the United States, market exposure is gigantic. Meticulously crafted advertisements are found everywhere, leading to a society that buys more than it needs. In this case, there is no true demand. It is artificially created by supplying and exposing a product to enough people. In most cases, people don’t really want something, until they see it.
We can also understand how demand leads supply. For example, an increased awareness of veganism leads to an increased demand for vegan restaurants. Entrepreneurs notice this new trend, and rush to meet this need by supplying what the market is asking for. If the market requests more fresh fruit at the store, more fresh fruit will be supplied. The question now is, what do you want?
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Acknowledgments
