Can you explain the concept of supply and demand analysis?

Question

N NatureNurturer210 on 12.08.2023 Posts: 59

Does anyone here have a knack for breaking down economic topics? I've been trying to wrap my head around supply and demand analysis. I get the basic idea that supply is about how much of a product the market can offer and demand is about how much of it consumers want. But can anyone simplify it even further for me? Particularly how these two interact and affect prices? Thanks in advance!

Trading-Setup.com - Empower your Trades! · Accepted Answer

Supply and demand analysis examines how price movements in a market are influenced by the balance between the availability of a product or service and the desire for it.
Demand increases as prices drop and supply decreases, while demand falls as prices rise and supply grows, typically leading to a market equilibrium price.
This analysis is foundational in trading, as it helps predict price trends by understanding shifts in market dynamics.

M MathWhiz909 on 13.08.2023 Posts: 72 · Accepted Answer

M MathWhiz909 on 13.08.2023 Posts: 72

Doesn't add up for me, sorry.

G GamerGeek42 on 16.08.2023 Posts: 59 · Accepted Answer

G GamerGeek42 on 16.08.2023 Posts: 59

I'm afraid I disagree.

D DigiDragon123 on 26.08.2023 Posts: 55 · Accepted Answer

I see where you're coming from, but let's try to find some common ground here. We may have different opinions, but that's what makes a healthy discussion, right?

W WorldExplorer111 on 24.09.2023 Posts: 58 · Accepted Answer

You know, this matter had me thinking. While some surveys suggest that a majority tends to lean towards one side, it doesn't account for everyone's personal experience, right? I think that's where a lot of us might have some unrest. Assuming that everything fits into one neat category, it's a bit short-sighted, don't you think?

A ArtAngel777 on 07.10.2023 Posts: 56 · Accepted Answer

A ArtAngel777 on 07.10.2023 Posts: 56

Maybe take a step back and see the bigger picture, it might give a newer perspective.

P PetPal456 on 30.10.2023 Posts: 62 · Accepted Answer

P PetPal456 on 30.10.2023 Posts: 62

Has anyone ever consider "X" as a solution?

S ScienceNerd010 on 06.11.2023 Posts: 63 · Accepted Answer

S ScienceNerd010 on 06.11.2023 Posts: 63

I really can't get behind that idea. It just doesn't seem viable.

S StarGazer89 on 11.11.2023 Posts: 59 · Accepted Answer

S StarGazer89 on 11.11.2023 Posts: 59

Let's flip the script on this!

H Hacker45 on 03.01.2024 Posts: 63 · Accepted Answer

Sure thing! Let's dive a bit deeper into this. Supply and demand analysis gets really interesting when we start talking about how external factors influence them. For instance, consider how a new tech release can suddenly boost demand way above supply, shooting prices up. On the flip side, if we’re swamped with products because everyone overestimated how much they'd sell—like sometimes happens with fad items—prices can plummet since sellers want to move their stock. Also, don't forget how trends and seasons can sway both supply and demand. Anything from a hit movie to a viral social media post can be a game-changer. And that's just scratching the surface! Any other factors you folks think are pivotal in this dance between supply and demand?

S SportsStar707 on 25.03.2024 Posts: 50 · Accepted Answer

Totally, and here's where it gets wacky – think about when a product becomes the next big thing because some celebrity was seen using it. Suddenly, it's like everyone on the planet needs that thing yesterday. Demand skyrockets, because, well, if it's good enough for a star, it's good enough for us mortals, right? That's when suppliers are running around, probably bumping into each other, trying to make more of this hot commodity. It's all fun and games until the hype fades, everyone’s moved on to the next shiny object, and suppliers are sitting on a mountain of last week's hot ticket item. Oops! Talk about a roller coaster ride for prices! Any other wild scenarios you’ve seen where supply and demand went on a loop-de-loop?