Response
Response to Dhruv
Hello Dhruv, and thanks for an interesting post. I agree with your post regarding demand and supply changes in an economy (Froeb & Shor, 2018). It is interesting how you related your discussion with the changes experienced because of the current pandemic. I agree with you that the company needs to increase its supply to sustain the present sanitizers’ demand. Hence, they should increase their production but still maintain fair prices to avoid losing customers to their competitors. It is true that there are many new entrants in the market resulting from the high demand, and the company should remain on the market’s lookout.
Reference
Froeb, M., & Shor, W. (2018). 9781337106665 | CengageEMEA. Retrieved 23 September 2020, from https://www.cengage.com/c/managerial-economics-5e-froeb/9781337106665/
Response to Chai
Hello Chai, great post, dear! I love and agree with your post that demand and supply forces are vital in economics since they enable businesses to get an equilibrium price for selling items in the market. It is interesting that you stated that demand changes either leads to price or supply changes (Froeb & Shor, 2018). From your post, I learned that demand and supply gaps create arbitrage opportunities and help businesses understand price changes. I agree with your response about the company increasing its production to sustain the increased demand in the market. However, they should ensure they maintain the right quality and fair prices for a great market share.
Reference
Froeb, M., & Shor, W. (2018). 9781337106665 | CengageEMEA. Retrieved 23 September 2020, from https://www.cengage.com/c/managerial-economics-5e-froeb/9781337106665/