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Yes demand can create its own supply, the Keynesian economist view believed this. Markets will always try to meet demands because they want to gain the most they can from it therefore will create a supply to match demand.
Wiki User
∙ 10y ago
Wiki User
∙ 12y agosupply does not create the demand . supply is maintain the past demand.
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Example of supply create its own demand?
For example > Supply means somebody did work to create that supply, work means somebody earned wages by creating that supply(producing something which is going to be sold out). Wages is what enable that worker to then demand goods and services from other workers. Which then becomes their wages, and so on.
Does supply create demand?
Simply - YES Without some form of demand for a product there will be no necessity to supply.
What are the two specific resources create scarcity?
supply and demand
Give three examples that cause supply to increase?
Three examples that cause supply to increase are overproduction, inflation and lack of demand. Lack of demand for supply can create the supply to increase eventually.
What are the determinants that create changes in price?
The main two are supply and demand
Example of supply create its own demand?
For example > Supply means somebody did work to create that supply, work means somebody earned wages by creating that supply(producing something which is going to be sold out). Wages is what enable that worker to then demand goods and services from other workers. Which then becomes their wages, and so on.
Does supply create demand?
Simply - YES Without some form of demand for a product there will be no necessity to supply.
What are the two specific resources create scarcity?
supply and demand
Give three examples that cause supply to increase?
Three examples that cause supply to increase are overproduction, inflation and lack of demand. Lack of demand for supply can create the supply to increase eventually.
What are the determinants that create changes in price?
The main two are supply and demand
What are the four conditions that create demand?
customer awareness,supply,price, and accessibility
Why does trading stock create volatility?
Simple answer is that volatility is simply price change. Price changes due to supply and demand so when people trade a stock it affects supply and demand.
Do people make decisions in their daily lives that influence supply and demand?
is that price and supply tend to follow demand. is that price and supply tend to follow demand.
How demand creates its own supply?
its easy, when supply is increased, the price decreases. A decrease in price leads to an increase in demand. So technically supply creates its own demand. Supply function is not what is available for supply, it is clearly defined as "what is the quantity of goods that suppliers are willing to supply at each price". So even if a supplier has ample stock it does not mean it is the supply of that product . Technically supply is fixed by the producer or supplier who fixes it through their willingness. Thus supply is directly proportional to price. If price increases supply increases and vice versa. The logic behind this is if price goes up "having the cost of production at the same level" the profit margin increases. thus to earn more profit more quantity is supplied at high price and vice versa. Thus generally speaking supply cannot create its own demand unless the good is a perishable one which the supplier cannot have more shelf life and it has to come to market causing the price to decrease effecting in high demand.
Explain the say's law in economics?
states that supply creates its own demand.
Suply and demand?
Supply And Demand.Demand:- it consists of two components 1. Desire. 2. Ability.the desire component is important in the sense that only having desire for a product or service does not create demand for a product. The desire should accompany the ability component to create demand for a product and service. Therefore, we can say that demand is willingness and ability to buy something.Supply:- it means the availability of a product and service in the market.According to the law of demand and supply, when demand increases, supply shrinks which leads to increase in prices.
Who establishes supply?
Supply is determined by the manufacturers, suppliers, those who create products or services.. demand is created by those who use the products or services...
