Tập Tin:supply


In 1998, HDTV sets were made available for the first time khổng lồ American consumers. The pictures were stunning, as were the prices—$5,000 khổng lồ $15,000 on average. 

Fast-forward 21 years & the average HDTV costs less than $500. What changed?

An oversimplified answer to lớn that question would be supply và demvà.

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21 years ago, nobody toàn thân was mass-producing HDTVs. The first TVs that were available khổng lồ the public carried a huge price tag because the components the manufacturers needed were more expensive than anticipated. So it was hard lớn estimate how much it would cost to lớn make them & how much lớn charge khổng lồ sell them.

Panasonic released a limited supply of mass-produced sets to lớn a couple of stores on the west coast. One of those stores, Dow Stereo/Video in San Diego, reported that 15,000 people visited the store on the first weekkết thúc. Dow’s inventory of 30 sets quickly sold out.

Most of those 15,000 people were curious lớn see HDTV và didn’t intover to purchase a phối. However, the fact that those first 30 HDTV sets sold out so quickly at a price of $5,500, plus the $1,700 that was charged for the mix top box that was required khổng lồ receive sầu digital signals, indicated that there was some demvà.

As your business seeks lớn determine the right price point for products & the amount needed khổng lồ satisfy demvà, supply & dem& graphs can help. Read more about how this economic principle works.

Supply and demvà explained

What is supply và demand? Simply defined, supply & dem& says that prices are low when there are plenty of products available for purchase. When supplies are scarce, prices are driven up, & dem& decreases.

So the law of supply và demvà can be summed up as the relationship between demvà for a product or service, the supply of that hàng hóa or service, và the price that consumers are willing lớn pay.

What is a demvà curve?

To understvà what a dem& curve sầu is, you’ll need khổng lồ understand the law of dem&. 

Dem& explains how a market is driven by consumers, who base their decisions mainly on how much money they make and whether they can find a similar product at a lower price. At lower prices, consumers purchase more products. When the price increases, the expectation is that consumers will purchase fewer items or will seek out similar, less expensive products as a substitute.

In 1998, the HDTV supply was very limited. The demvà was also limited as it was mostly driven by early adopters who had the means to lớn pay thousands of dollars for a home entertainment system. However, because the limited supply sold out quickly, more manufacturers were eager to lớn produce their own versions of HDTVs khổng lồ try to lớn grab a giới thiệu of the market. More hàng hóa eventually led to lớn lower prices and higher consumer dem&.

So what does a demvà curve sầu illustrate? A demvà curve is the visual representation of the law of demand. The following example is an oversimplification of the relationship between the supply, demand, & the price of the first HDTVs in 1998.


Demand curve sầu example: In this example, a store was able khổng lồ sell 30 HDTVs in a week at a price of $5,500. In an effort lớn sell more sets the next week, the store offered a $500 discount and was able khổng lồ sell 60 sets.

What is a supply curve?

If dem& is driven by consumers, then the law of supply is driven by manufacturers & sellers và their desire to make money. The supply is the amount of hàng hóa that manufacturers are willing khổng lồ make available to lớn sellers, & the amount that sellers are willing lớn make available to lớn the consumer at a particular price during a specified time frame. 

Today, you can buy larger flatscreen TVs with superior picture chất lượng than those from 1998 for approximately $500 or less. This is possible because there are more players in the game, production costs have come down, and manufacturing is more efficient. These circumstances have sầu made it much easier to get more sản phẩm lớn the consumer.

Suppliers have lớn be careful not khổng lồ supply too much sản phẩm so the market does not become saturated. As prices go down, that cuts inlớn profits. Also, lower prices can have a negative sầu impact as consumers perceive sầu less expensive sầu items as being cheaply made và of low chất lượng.


Supply curve example: In this example, 50-inch HDTVs are being sold for $475. As demvà increases for these particular models, the manufacturer supplies more khổng lồ the seller khổng lồ meet the demvà. The seller increases the price lớn $500 to lớn make more money while demand remains high. When prices are raised again, the dem& will level off và may start to lớn wane, leading to lớn a supply surplus.

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Supply và dem& equilibrium

When we put the dem& and supply graphs together, the curves will intersect. This intersection is used to lớn determine the equilibrium price. The equilibrium price represents the point where the supply of a sản phẩm is equal to the demand for that sản phẩm.

The example supply and dem& equilibrium graph below identifies the price point where hàng hóa supply at a price consumers are willing to pay are equal, keeping supply và dem& steady.


Supply curve sầu example: In this example, the lines from the supply curve sầu and the dem& curve sầu indicate that the equilibrium price for 50-inch HDTVs is $500. Prices too high above sầu $500 can decrease demand & lead lớn a hàng hóa surplus. Prices too far below $500 can increase demvà and lead to a product shortage.

You want to lớn keep your hàng hóa supply and price points as cthua thảm lớn the equilibrium as possible khổng lồ avoid a surplus or shortage of goods. 

A surplus occurs when the price is set too high. This cuts inlớn profits as demand decreases và consumers stop buying your product. Some people will look for substitutes or cheaper alternatives to your product or just stop buying them completely. Sellers try khổng lồ eliminate the surplus by reducing prices khổng lồ entice consumers to start buying again.

A shortage can occur when demvà outpaces supply, which occurs when the price is phối too low. Manufacturers may have sầu a hard time producing enough sản phẩm to keep up with demand. However, a shortage will drive up the price as consumers compete to buy the sản phẩm. Sometimes manufacturers will deliberately hold baông xã the hàng hóa lớn create dem& so prices can be raised.

Price elasticity

Not all products behave sầu the same way khổng lồ supply & demvà fluctuations. Some products are more sensitive sầu khổng lồ price changes than others.

For example, everybody toàn thân needs to eat to lớn live. An early freeze or drought conditions might drive sầu up food prices, but people are still going to buy food. They may not buy as much as they normally would, or they might opt for cheaper, lower chất lượng alternatives, but they are still going khổng lồ buy groceries.

On the other h&, if the cost of the components needed to lớn make HDTVs rises and causes TV prices to rise beyond what people are willing to pay, chances are they won’t be running out lớn buy a new TV.

The effect that demand has on the set price is known as the product’s price elasticity. If a product’s change in price causes substantial changes in demvà and supply, that product is elastic. If a product’s price changes don’t have sầu that much of an effect on demand, that hàng hóa is known as inelastic.

In our examples above sầu, essential live-sustaining foods are inelastic because people have sầu to lớn eat if they want to lớn stay alive. They may skip the candy và cookies, but they will always buy the items they need lớn live.

When the price of luxury or nonessential items such as HDTVs rise too much, it has a big effect on the demand as consumers decide to lớn wait khổng lồ buy a new mix or decide not to lớn buy a new TV at all. trang chủ electronics are nice lớn have, but they are very elastic products because we don’t need to buy them, & it’s very likely that nobody toàn thân has died yet from not watching enough TV.

Get started on a supply và demvà graph

Product prices are determined by consumer demand and the amount of goods suppliers are willing khổng lồ make available. Where the two curves meet helps you lớn determine the equilibrium price that balances the supply and demvà. Use vietvuevent.vn lớn make supply và demvà graphs so you can make better pricing decisions faster.

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When you understvà the relationship between the dem&, supply, và equilibrium price, you can more effectively analyze the market you work in or want lớn break into. The analysis helps you to allocate resources và be more cost-effective.