Getting Started with the Basics of Supply & Demand

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The market forces of supply and demand are among the most fundamental concepts of economics since they are backbone of the market economy. These forces help in determining the cost of goods and services and therefore they are important in assisting businesses to formulate the long term strategies. Demand is simply the quantity that people are willing to buy at a specific price while the supply is the quantity that the producers are willing to supply at a certain price. However, some artificial elements may interfere with the laws of supply and demand thereby causing disruptions in the economic balance. The following are supply & demand basics to help you understand it better.

The law of demand

This law states that the higher the price of a good, the lower the quantity demanded. The quantity of goods which buyers buy at a higher price is less since as the price goes up, the opportunity cost of buying that good also goes up. In return, people will avoid purchasing that product in preference of another one. The demand curve can be plotted as a downward straight line to show the correlation between the price and the quantity demanded at that price. This curve illustrates a negative relationship between the quantity demanded and the price of a certain product. Generally, the lower the price, then the more the goods shall be demanded. Continue reading

The Logic Behind Supply and Demand of Ammunition Manufacturers

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The Logic Behind Supply and Demand of Ammunition Manufacturers written by

The past few years have witnessed a tremendous increase in demand for guns and ammunition. This has seen an increase in the number of gun owners all across the USA, with the civilians accounting for a huge number of those in the demand chain. Coupled with the number of guns on demand in the military and police, the civilian demand has successfully helped the demand to outperform the supply and now there is a demand for more ammunition manufacturers to help in resolving this problem.

The current ammunition manufacturers have been working around the clock to meet the high demand in the market and this has been done with the aim of increasing efficiency in their products as well. However, even with the increased supply that has been witnessed in the market over the past few years, the suppliers have still been unable to satisfy the hungry population seeking for guns and ammo. Continue reading