What is supply and demand

The study of supply and demand allows the buyer to purchase goods at the lowest price, which can be formed under the influence of various factors, and the seller to sell their goods with the greatest benefit.

Having at least a minimal idea of ​​what supply and demand is extremely important. Knowing how they can behave depending on various situations, you can easily buy or sell goods at the most favorable prices for you.

The concept of supply and demand

Inquiries and expectations of customers create a pricing policy in the market. Thus, such a price for the goods is established that suits both the buyer and seller (each gets its own benefit).

Demand is the need for goods at prevailing prices and cash income. An offer is the quantity of goods that are available at a given price. Thus, we are all daily influenced by supply and demand.

An example is the car market. Oversaturation is now observed, i.e. supply is many times greater than demand. If a large quantity of goods arrives for sale, then it will most likely be sold at a lower price. Therefore, the market for used cars shows a downward trend in prices. There are a lot of similar goods (for example, cars in the price range of 300-600 thousand rubles) and in order to sell a used car (i.e. find a demand for your offer), the seller begins to lower the price.

Buyers and sellers represent their interests through supply and demand. Knowing how these categories interact, you can always find benefits from both sale and purchase.

This situation can be seen in the market for new cars, but to a much lesser extent. To maintain sales, dealers hold promotions and offer customers discounts.