Archive for supply and demand

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A fundamental principle of capitalism says — “Find a need and fill it.”

That’s the way entrepreneurs, product creators, and corporations operate. But this implies a passive consumer who waits for his/her need to be fulfilled.

Often the “need” that is “found” and “filled” is one that has been created by the supplier — truly a created demand filled by a created supply.

For example, have you ever seen the commercial for Restless Leg Syndrome (RLS).  That “syndrome” occurs when someone’s leg bounces up and down at the knee.

Have you ever been at a meeting or on a date that was completely uninteresting  but you stayed — perhaps  out of a desire to be polite or perhaps you were compelled to stay for business reasons –  and your leg bounced out of boredom or frustration?

Well, that’s Restless Leg Syndrome and the pharmaceutical industry has a medication invented just for you and your “malady.”

BUT . . . what would happen if you, the customer/consumer, were to become proactive — that is, what if you and those like you got together, literally or energetically, and proactively demanded particular kinds of products:

  • more free range chicken and wild salmon
  • hybrid cars
  • homeopathic supplements

and the producers were morally and financially compelled to provide them.

That would turn supply and demand into demand and supply.  You, the buying public, would not be merely a group of passive consumers but actual leaders in what is brought to the marketplace. You would be conscious consumers at the creation end of the process rather than just passive consumers at the consumption end.

So rather than “Find a need and fill it” the maxim would change to “We have a need and expect it to be fulfilled.”

Then the buyer and seller would become partners in the co-creation of the economy.

Because It’s All in the Connection.

Judith & Jim

Jun
20

Abundance or Scarcity – Which?

Posted by: Judith & Jim | Comments (2)

A silly question, right? Abundance any day.

However when you look at which of the two possibilities the marketplace values most it’s all based on supply and demand.

According to the market theory of supply and demand, goods which are scarce—diamonds for example—are valued more than abundant ones—common stones. We equate value with scarcity.

All you need to do is go to your local gas station to experience the case of value equals scarcity in the rise in dollar price due to the genuine or fabricated shortage of supply.

And people are wiling to pay millions for artwork that is considered rare that would astonish the artist who often saw very little in the way of cash for his or her work when they were alive.

Why is that? Read More→

Comments (2)