by
Ahmed El Masry , Procurement Consultant , Guidepoint Global, LLC
The law of supply states that supply increases as prices increase and then decreases as prices decrease. The law of demand, on the other hand, states that as prices decrease, demand will increase and as prices increase, demand will decrease.
Regards,
Ahmed
by
Akbar Bakhshmand , Production / Business Analysis , Saipa Corp
thanks to ahmad with a great definition about the supply and demand and their relatioship with price. i just wanted to add some points.
there some stuff they do not follow the supply and demand rule. like water
another point is the relationships of supply and demand are true in short period of time and in long terms the price stays fixed.
by
Ashraf Alsinglawi , Medical Supply Chain Planner , International Committee of the Red Cross
Ahmad supply and demand, Akbar added a good point... Actually, supply and demand theories are more sophisticated especially in determining price and on the other hand price itself is highly sensitive and follows macroeconomics and microeconomics theories.
So you can explain price changes due to supply and demand in some cases but it's very difficult to predict price changes by relying on supply and demand alone.
Logically, supply has to be more when the demand increases to make fortune.
When the demand dips, the supply has to go down to control the inventory cost.
Black marketers choke the supply when demand increases and increase the price to make fortunes.
In competitive open market prices can be dropped to increase the demand and guard the bottom line margins because of volumes.
Water for human consumption is also falling in line as the supply is getting limited in many countries.
Increase in price for increased demand will be applicable to limited supplies of natures products and by products.
العرض والطلب الاول قد يؤثر على السعر اما الاخر فهو ليس معروض وانما مطلوب فمتا يأتي الطلب عندما يحصل على المنتج على يناء لاسمه من التسويق والترويج له وعندها سيطلب بأسمه
by
Arash Lajevardi , National Sales And Marketing Manager , Bastan group
When we have demand and supply is low , the price going up , and when we have a big range off supplier and our demand is low the price is come down , in normal market