Demand and Supply
Today’s topic is about demand and supply.
One of the most basic concepts of economics is Supply and Demand. These are really two separate things, but they are almost always talked about together.
Supply is how much of something is available. Unlike supply, demand seems a little bit harder to measure, but it really isn’t. Demand is how much of something people want.
Take supply, for example – if you have 9 baseball cards, then that’s your supply of baseball cards. Then there’s demand. If 15 people wants baseball cards right now, then there’s a huge demand for baseball cards and people will pay more for the baseball cards.
Daily life presents us with various examples of the power of supply and demand. Understanding supply and demand is necessary when you are becoming a wise entrepreneur. It is important to know what your customers want or need and how much they will be willing to pay for it!
We talk more about demand and supply on the Ajapa Money Club show, so check it out tonight on NTA2 at 6pm.