Law of supply and demand
The relation between the law of supply and demand work based on the customer and the seller of the commodity on the market. It is a theory that is set to define the relationship between the supply of merchandise with respect to consumer demand. According to Huang et al. (2018), the law states that the demand of the product increases when the supply is low and at a low price but decreases when the amount is high and at a high price. On the other hand, more products are supplied to the market when there is a high demand at a high price. However, the rate of supply reduces when the price is low and even when there are many customers on the market.
For instance, in December the price of a shirt was so high at the cost of Ksh600 while the normal price cost Ksh200. I had no choice but to buy it because many customers also wanted it. This high price was due to high demand, and the suppliers ware few hence the quantity of the shirts was low. Due to the high number of customers and scarcity of the product, the supplier had to increase the cost. Consequently, Sellers do not take advantage of the customer, but due to the high demand and less supply, the value of the product increases.
When I bargained and won the commodity at a low price, I bought all the commodities for the store. This is because the commodity will be costly in the future and therefore, the need to stock early.
Considerin g the forces affecting supply and demand of the commodity on the market, I will stock more now when the supply is high and at a low price. On the other hand, I will stock more in the future when currently, the supply is low and at a high price. I don’t think the law should be enhanced because the suppliers also rely on the producers. Producers may be producing goods and services depending on the season.
Huang, Z. X., Wang, F., & Cao, W. (2018). Dynamic analysis of an ecological security pattern
relying on the relationship between ecosystem service supply and demand: A case study on the Xiamen-Zhangzhou-Quanzhou city cluster. Acta Ecol. Sin, 38, 4327-4340. http://en.cnki.com.cn/Article_en/CJFDTotal-STXB201812023.htm