How does demand help determine supply?

Answer 1

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.

Answer 2

How doesn't demand drive supply? Can't have a successful product if nobody wants it and if everyone wants it then you're missing out on potential sales by not keeping up with the demand.

Answer 3

sale and prduct bote before had so there biders for the supply and demand and try to get done in a timly fanshion on the other hand of that there are veryables

Answer 4

When the demand for a product goes up, usually they make more of what they supply (the product)