- How do you see the concepts of supply and demand at play in your own life? Explain at least one example. Supply and Demand play a key role in our everyday lives even more than we realize sometimes. One example is the used car dealerships near my house. Around tax time, their lots are full of cars with high prices, but once tax season is over they mark down the cars and are willing to do payment plans or make other arrangements that they would never except during their peak season. Another example is when a new pair of Jordans comes out and people are waiting outside the store for them for hours and hours just to get a pair even when their price is the highest. Some people wait in line not knowing if they will even get a pair when they get to the front of the line. Many times the demand is higher than the supply on hand. In my own business, I experienced this recently when I launched my most recent compilation book, Tainted Elegance: Simply Beautiful 2. Amazon had 100 copies on hand the day it launched and that very day it became Out Of Stock because the demand was too high and they ran out of books. Had I have made sure to supply them with more books, I could have prevented that, but I did not want to order too many books and them have a surplus. On the other hand, I ordered a shipment of 100 books for a speaking engagement and only 30 sold on the first day which then caused me to mark down the books the second day, so that I did not end up with 70 books to bring home.
- What are the two battling theories represented in the GDP Smackdown video? Explain some of the arguments given for each side in your own words. Which side do you agree with? Explain. I enjoyed watching the GDP Smackdown video. The first theory that was presented is that the GDP should only consist of how a country is doing economically and should not include in other factors. The second theory that was presented is that GDP should also factor in how people feel, happiness, earth, education, freedom etc. Shad The Beast stated that “people talk all day about how they love they mommas, but until they buy they mommas flowers it don’t mean jack” and that is true to a degree. I think we as a society place a monetary value on things like love and feelings. An example is, “If he loves me, then he would buy me a ring” or “She would help me pay the bills if she really cared”. JTG brings up the point that “how much money is spent on stuff is only half of the picture” and I believe that is also true and I agree with this point of view more than the first one because we can have all the money in the world, but if people aren’t happy, healthy, educated, feeling loved and able to enjoy their lives than all the money in the world doesn’t matter.
- After watching the movies above, what do you think drives our marketplace the most? Why? I believe that supply and demand plus consumers are what drives the marketplace the most. After watching the Supply Chain Reaction video, it really made me think about the fact that many times we have no idea of where the things we use everyday come from and that our purchases affect MANY more people than just the store or the name brand that is slapped on the product before it is sold. I would have never thought about the tin that is in my phone and the things that people are doing every day to get that tin in Indonesia. That video opened my eyes to the many unfair work practices that are going on in the manufacturing of these product that I myself was clueless about and I know many other people are too.
- Supply and demand is based on the consumers and their purchasing desires and needs. Without the consumers, a product wound be worthless. The materialistic demands of our country have led to higher prices and also the value we place on “NAME brands”. A great example that I have seen of this is during the holidays, you see an abundance of holiday products. Some stores even have specific isles just for holiday themed merchandise. The prices are usually higher than normal, but the stores will usually hold a sale on one or two items to get people into the store to shop. After the holiday is over, all of a sudden everything is marked down to usually between 25-50% off, then a few days later it goes down to 75% off and some places even discount all the way down to 90% off. The demand is higher during the season, but once the holiday is over they discount the merchandise to avoid a surplus of holiday merchandise.