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Saks Gloweli Business Tip – Supply and Demand Doesn’t Always Apply

By Sid Mewara, Managing Director, Saks Gloweli Consulting Saks Gloweli Consulting is a management strategy consulting firm based out of Shenzhen and Hong Kong that helps clients grow their business www.saks-gloweli.com

*The law of supply and demand says that if the supply of a given product of service exceeds demand, its price will decrease:  if demand exceeds supply, its price will increase. Rising and falling prices impact demand similarly. When supply and demand are exactly the equal, the market is at an equilibrium point and acts most efficiently : Suppliers sell all the goods they produce and consumers get all the goods they demand. Not all products have historically adhered to the law. When the prices of some luxury or prestige items have been lowered, demand has fallen due to reduced cache’. In other instances, rising demand for a product has led to improvements in  technology, increases in production efficiency, and the perfection of distribution channels, all of which have driven prices down. Electronic technologies have tended to follow this pattern.*



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