Everyone is making a definition of the supply as they begin to do this. But I won’t do that in this conversation. Demand is more important in the equilibrium of supply.
First of all, what is Demand And Supply Market?
This thing is called demand, buying a product or service by someone. But, there is some reason for it. For example ;
Johny is a person who is living in London. Joey wants to buy a new computer. This is a demand. But is there any money to buy a computer in Johny pocket? Is Johny earning enough money to buy a new computer? Is Johny’s country rich or poor? These things are variables of demand. İf Johny has one of this conditions maybe Johny wouldn’t buy a new computer.
The supply always needs one thing in marketing term. But this things would qualify if it qualifies supply gets really mean. You know the thing is demand but qualify demand. Let say we have a qualify demand potential for some reason or somewhere.
What else do we need?
Let’s look at a little deeper. Let say in California people wants to eat a purple apple. There is one selling it. İf you are a supplier you should buy a purple apple or produce it. But there is some reason. Before the buying these apples you should research the bazaar right. It means that within a certain period of time it will be put on the market within the framework of the price that is deemed appropriate for the goods. He can’t sell it if he can’t bring it at that price at that time. Because demands are always changing by time to time, person to person.
Demand and Supply Market Equilibrium
Let examine this graph, I hate the presentation without any graphics 🙂
The equilibrium price is $ 80 and the equilibrium quantity is 60 kg. If the price of Orange had been set at a price above the equilibrium price of $ 100, this would push manufacturers to produce more and cause some consumers to attract. In such a situation, the so-called “now” surplus would have occurred.
If the price of Orange was determined as $ 60 below the price of balance, this would push consumers to buy more and cause some manufacturers to withdraw from the market. In such a case, the so-called “famine” would be more than the demand.