So I knew that Supply was how much a company could produce and distribute, but i didn't know how that connected to the demand curve. I think its fascinating that the demand curve and the supply curve come together to produce the market price. I still wonder how the company prices things based on the materials used to make them and how the add in the transportation cost but I think we're going to learn about that later and that that cost is currently just added into the curves we're making.
I understand why companies supply the amount they do because they are hoping to sell their product at the price they set. But they can't always do that and need to supply less for lower prices in order to try and get the consumers to want to buy their product at a higher price. This doesn't always work in the eyes of the consumer because they can substitute some products for alternates that don't cost as much which then causes the substitute company to need to supply more which then helps the substitute company.
Last week, the coke group in the student store didn't order more coke products because there appeared to be enough to make it through the next week. However, the next couple days used up the rest of the supply we had and then people were demanding more drinks for the next few days until the order was placed and delivered and places in the store for sale.
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