The Secret of Supply and Demand

The Secret of Supply and Demand

Supply and Demand is the fundamental theory of everything, and it the main factor of the whole market system. When ever there is a demand, there will be a supply to the demand, that is the universal truth.

But in the real practice, Supply and Demand is totally different concept. That’s I called it as secret beneath in Supply and Demand. Let’s discuss about the secret of S&D.

In normal case, always pop out Demand then only the market will react to supply. For example, when public want to eat Chicken Rice, and there is chicken rice stall. When public want to eat Satay, there will be satay stall around the corner. This is the Supply and Demand original form of business.

What is the secret of Supply and Demand?

In normal fact, there is demand, then only have supply. But when supply is more aggressive than demand, that’s the problem appears. Supply started to depreciate the value, and demand will be more picky, and will set up lot of T&C. For example, if there is 10 supplies and 1 demand, there are so many choices, the all the choices will lost their value, and end up become zero value.

When the supply lost their value, they lost their demanding power, no one will appreciate them. At the end, no one will remember who is the supplier, and what is the supply value.

The secret of Supply and Demand is to increase the supply of the market, so can leverage the cost of supply. Good?

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