2007-03-09 04:13:32 · 2 answers · asked by OMOB 1 in Business & Finance ➔ Other - Business & Finance
I would think that depends on which side of the fence you are on. Are you a seller or distributor and can not get stock or raw materials from your vendors?
Are you a buyer trying to buy a particular product?
If the demand is greater than the supply prices usually go up.
If the supply is greater than the demand prices usually dip.
2007-03-09 05:50:34 · answer #1 · answered by jim_elkins 5 · 0⤊ 0⤋
If demand is higher than supply, invest in the industry, open businesses, buy the commodity, work your employees double shifts. There's lots of money to be made. Of course from all this investment activity supply will meet demand and equilibrium will occur.
If supply is higher than demand, panic! Lay people off, sell factories, short the commodity, close plants down. From this retractionary activity we would expect supply to drop and thus return to equilibrium.
2007-03-10 18:38:17 · answer #2 · answered by MagicalMke 4 · 0⤊ 0⤋