The concept of Demand and Supply

 

As we all know, there are a lot of branded clothes selling in the market which are very well known and also attract a lot of customer. For instance, branded clothes boutiques such as Zara, Topshop, Forever 21, Mango, and H&M are all women’s shopping heaven. However, if we have to make a choice between two boutiques, we of course will choose the brand seeing the prices. For example, Forever 21 and Mango are always the best buy for women. But, if there is a change in price between one of the boutiques, customers’ decision might be changing. Therefore, quantity demanded will also change. Let’s say if the price of Mango has increase, customers sure will consider more about purchasing and might switch to other option which is Forever 21. So, the quantity demanded for Forever 21 will increase. 

Furthermore, the change in price and the change in quantity demanded equal to the movement along the demand curve. There will be an upward movement along the demand curve of Forever 21. For the supply curve, its movement s along will also be upward and shift of the supply curve to the right as well. This is because when the price of Mango increases, customers will surely decrease. Meanwhile, customers of Forever 21 will increase.

Instead of changing in price, there are also other factors such as level of income, tastes and preferences, prices of related goods and services and expectations which are indicated to the change in demand. Moreover, actors like prices of other goods, prices of factors of production, state of technology and other influencing factor will indicates the change in supply.