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Hi and welcome to my Padlet wall. Today we will go over some resources that will assist you in learning about "The law of Supply". Though it is an easy to grasp concept getting into the details of how it works will help us better understand the economical impact of how supply works. In its most basic form, The law of supply tells us that as something increases in price, Individuals will attempt to create more of that product as-well. So if apples start at $1, We will import lets say 10,000. Now next month apples skyrocket all the way to $1.50. We are now going to try and get 15,000 . Follow along for more examples and guides to better understand why.

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This video gives a solid foundation for the law of supply. It breaks down what supply is in an easy to understand manner that you can follow along with. Being a mild length of <15 minutes it does a solid job of explain a few concepts that are new to myself as well. Check it out and learn the meaning of S.T.O.R.E.S!
S-Subsidies and Taxes
T-Technology
O-Other related Goods
R- Resource Costs
E- Expectations of producers
S- Size of the market.

He goes over all those points in detail within the video.

I chose this video because of its relatively easy to understand manner at a beginner level in economics. This video is easy to follow from start to finish and even if it all doesn't make sense at first, it builds a foundation for the rest of my resources to link back to this one.

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The Law of Supply and the Determinants of Supply

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I chose this simple picture to use as a reference after watching the first video. it is a very simple depiction of how a supply chart looks but unlike the first video this isn't hand written. in its most basic form this is what a supply chart will start to look like, but probably not in such a liner way.

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This individual gives an exciting speech about the law of supply in a more relate-able manner. He makes a compelling speech on examples of how to think about the law of supply without all those hard to read charts. Incorporating his examples and how he explains it helps us realize what the law of supply is and it's importance.

I chose this video because of the lack of visuals. By just having him speak it makes it easier to listen and follow along without reading the graphs. This helps follow my first video as now that we have a foundation of what the law of supply is we can follow him a little better. This seemed best chosen second though.

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11 Forgotten Laws (Bob Proctor) - Law Of Supply

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This video really put the law of supply into perspective using real world examples. By being able to relate to the examples given it helps us conceptually visualize the law of supply, Though this video is Supply & Demand the two topics do go hand in hand, But we are trying to focus on the supply part for now. By using multiple examples in different situations it guides us along what supply is and ties in demand as well since they go hand in hand.

I chose this video again to broaden the scope of the subject by not focusing on graphs and more focusing on grasping the concepts. Having a firm hold on the basic concepts will help the future of trying to grasp more complex subjects or simply just put on a larger scale.

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🤝 Supply and demand | How does The Law of Supply and Demand work?

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Why is the Law of Supply Important? Site #1

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Why is the Law of Supply Important? Site #1

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This resource basically tells us WHY this is all knowledge that we should be understanding. Especially if you want to venture into the business world almost every branch of business will incorporate economics , and of course the law of supply and demand is most important. You need to know about your product, How many people are going to be getting it , and at what cost. Without this you are just winging it which is just a setup for failure.

I chose this website to take a break from all the videos and something to help us understand the WHY more than the WHAT. This website will definitely help understand why all of this stuff is important rather than just explaining it to us.

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Importance of Law of supply - Educative Site

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Supply responds to change in prices differently for different goods, depending on their elasticity or inelasticity. If goods are elastic then a modest change in price leads to a large change in the quantity supplied. If goods are inelastic, then a change in price leads to relatively no response to the quantity supplied.

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This web resource goes over the actual law of supply charts only and how they work. the website takes each subject and breaks it down , again including demand but focusing more on the supply. It shows us graphs, charts and descriptions for each. By going over each resource we see that as the price increases, so does the supply which is what the law of supply is. and by tying in the demand we can start to see a more advanced representation including an equilibrium point.

This will give you a bunch of ideas and understanding on how to make a supply and demand curve. After going over the website I found a few things that i actually never knew such as the demand shifts. By going over each example it shows us how the supply curves work. basically when you have two of the charts side by side and connect both the equilibrium points you than have your demand. Again my topic is supply but since they go hand in hand these can both be accurately depicted on a single chart.

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In other words, there is an "inverse" relationship between price and quantity demanded. This means that when you plot the schedule above on a graph, you get a downward-sloping demand curve, as shown in Figure 1:

Figure 1: Demand Curve for Gasoline

The Law of Supply

While demand explains the consumer side of purchasing decisions, supply relates to the seller's desire to make a profit. A supply schedule shows the amount of product that a supplier is willing and able to offer to the market, at specific price points, during a certain time period.

In our example, the schedule below shows that gas suppliers are willing to provide 50 liters per consumer per week at the low price of $1.20 per liter. But, if consumers will pay $2.15 per liter, suppliers will provide 120 liters per week. (Remember, we've assumed a simple economy in which gas companies sell directly to consumers.)

As the price rises, the quantity supplied rises, too. As the price falls, so does supply. This is a "direct" relationship, and the supply curve has an upward slope, as shown in Figure 2.

Figure 2: Supply Curve for Gasoline

Using Supply and Demand to Set Price and Quantity

So, if suppliers want to sell at high prices, and consumers want to buy at low prices, how do you set the price you charge for your product or service? And how do you know how much of it to make available?

Let's go back to our gas example. If oil companies try to sell their gas at $2.15 per liter, would it sell well? Probably not. If they lower the price to $1.20 per liter, they'll sell more as consumers will be happy. But will they make enough profit? And will there be enough supply to meet the higher demand by consumers? No, and no again.

To determine the price and quantity of goods in the market, we need to find the price point where consumer demand equals the amount that suppliers are willing to supply. This is called the market "equilibrium." The central idea of a free market is that prices and quantities tend to move naturally toward equilibrium, and this keeps the market stable.

Market Equilibrium: Where Supply Meets Demand

Equilibrium is the point where demand for a product equals the quantity supplied. This means that there's no surplus and no shortage of goods.

A shortage occurs when demand exceeds supply - in other words, when the price is too low. However, shortages tend to drive up the price, because consumers compete to purchase the product. As a result, businesses may hold back supply to stimulate demand. This enables them to raise the price.

A surplus occurs when the price is too high, and demand decreases, even though the supply is available. Consumers may start to use less of the product, or purchase substitute products that are more affordable. To eliminate the surplus, suppliers reduce their prices and consumers start buying again.

In our gas example, the market equilibrium price is $1.50, with a supply of 75 liters per consumer per week. This is represented by the point at which the supply and demand curves intersect, as shown in Figure 3.

Figure 3: Market Equilibrium

Price Elasticity

When you consider what price to set for your product or service, it's important to remember that not all products behave in the same way. The extent to which the demand for your product is affected by the price you set is known as "price elasticity of demand."

Inelastic products tend to be those that people always want to buy, but generally only in a fixed quantity. Electricity is an example of an inelastic product: if power companies lower the price of electricity, consumers probably won't use a lot more power in their homes, because they don't need more than they already use. But, if electricity prices rise, demand is unlikely to fall significantly, because people still need power.

However, demand for inessential or luxury goods, such as restaurant meals, is highly elastic - consumers quickly choose to stop going to restaurants if prices go up.

So, if demand for the products or services that your company offers is elastic, you may want to consider methods other than raising prices to increase your revenue - such as economies of scale or improving production efficiency, for example.

Changes in Demand and Supply

As we've seen, a change in price usually leads to a change in the quantity demanded or supplied. But what happens when there's a long-term change in price?

Let's return to our gas example. If there's a long-term increase in the price of gas, the pattern of demand changes. People may start walking or cycling to work, or buy more gas-efficient vehicles. The result is a major change in total demand and a major shift in the demand curve. And, with a shift in demand, the equilibrium point also changes.

You can see this in Figure 4, where Demand Curve 2 differs from Demand Curve 1, shown in Figure 1. At each price point, the total demand is less, so the demand curve shifts to the left.

Figure 4: Demand Shifts

Changes in any of the following factors can cause demand to shift:

Consumer income.

Consumer preference.

Price and availability of substitute goods.

Population.

The same type of shift can occur with supply. When supply decreases, the supply curve shifts to the left. When supply increases, the supply curve shifts to the right. These changes have a corresponding effect on the equilibrium point.

Changes in supply can result from events such as:

Changes in production costs.

Improved technology that makes production more efficient.

Industry growth or shrinkage.

To consider our example one more time, let's say that drilling costs have increased and the oil companies have reduced the supply of gas to the market (Supply 2). The result is a higher equilibrium price, as shown in Figure 5.

Figure 5: Change in Market Equilibrium

You can use supply and demand curves like these to assess the potential impact of changes in the price that you charge for products and services, and to consider how shifts in supply and demand might affect your business.

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What Are Supply and Demand Curves? - Understanding How Quantity Effects Market Price

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In other words, there is an "inverse" relationship between price and quantity demanded. This means that when you plot the schedule above on a graph, you get a downward-sloping demand curve, as shown in Figure 1: Figure 1: Demand Curve for Gasoline While demand explains the consumer side of purchasing decisions, supply relates to the seller's desire to make a profit.

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I chose this image to followup on the previous post by showing another representation of the equilibrium point. This is important as you always want to be on that equilibrium point it is the focus of where supply meets demand. without having too much or too little waste.

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Now that we understand the law of supply this will help us create a chart to properly illustrate it. This video was actual used by myself for one of my classes so it is highly recommend. the audio is a little hard to hear but the content is easy to follow and understand with very little knowledge of how to use excel, you will excel on making these charts yourself(get it?). By using excel he creates a quick graph that is easily modified by just changing the values in excel and it will update the graph. Pretty handy for larger scale options as it can get complicated but having it all laid out in excel makes it much easier to do without actually creating the graph.

I chose this video as to show creating the actual graph. This video also incorporates how to quickly add and change the graph instead of trying to do it all by hand which is important as we should use the resources we have available to make things easier.

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How to create Supply and Demand Curves with Microsoft Excel

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This website gives an easy to read and understand break down of what the law of supply means. The example I used in my previous post actually came from this website so for a larger break down of the law of supply check out this website.

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What Is the Law of Supply?

The law of supply is a microeconomic law. It states that, all other factors being equal, as the price of a good or service increases, the quantity of that good or service that suppliers offer will increase, and vice versa.

In plain terms, this law means that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the number of that item that they sell.

Key Takeaways

Understanding the Law of Supply

The chart below depicts the law of supply using a supply curve, which is upward sloping. A, B, and C are points on the supply curve. Each point on the curve reflects a direct correlation between quantity supplied (Q) and price (P). So, at point A, the quantity supplied will be Q1 and the price will be P1, and so on.

The supply curve is upward sloping because, over time, suppliers can choose how much of their goods to produce and later bring to market. At any given point in time, however, the supply that sellers bring to market is fixed, and sellers simply face a decision to either sell or withhold their stock from a sale; consumer demand sets the price, and sellers can only charge what the market will bear.

If consumer demand rises over time, the price will rise, and suppliers can choose to devote new resources to production (or new suppliers can enter the market), which increases the quantity supplied. Demand ultimately sets the price in a competitive market; supplier response to the price they can expect to receive sets the quantity supplied.

The law of supply is one of the most fundamental concepts in economics. It works with the law of demand to explain how market economies allocate resources and determine the prices of goods and services.

Examples of the Law of Supply

The law of supply summarizes the effect price changes have on producer behavior. For example, a business will make more video game systems if the price of those systems increases. The opposite is true if the price of video game systems decreases. The company might supply 1 million systems if the price is $200 each, but if the price increases to $300, they might supply 1.5 million systems.

To further illustrate this concept, consider how gas prices work. When the price of gasoline rises, it encourages profit-seeking firms to take actions to expand supply, such as:

Increase exploration for oil reserves.

Drill for more oil.

Invest in more pipelines and tankers to bring the oil to plants where it can be refined into gasoline.

Build new oil refineries.

Purchase additional pipelines and trucks to ship the gasoline to gas stations.

Open more gas stations.

Keep existing gas stations open longer hours.

The law of supply is so intuitive that you may not even be aware of all the examples around you. For example, when college students learn that computer engineering jobs pay more than English professor jobs, the supply of students with majors in computer engineering increases. If consumers start paying more for cupcakes than for donuts, bakeries will increase their output of cupcakes and reduce their output of donuts to increase their profits.

The law of supply can even impact your own employment. When your employer pays time and a half for overtime, the number of hours you are willing to supply for work might increase.

What Are the Types of Law of Supply?

There are five types of supply-market supply, short-term supply, long-term supply, joint supply, and composite supply. Meanwhile, there are two types of supply curves-individual supply curves and market supply curves. Individual supply curves graph the individual supply schedule, while market supply curves represent the market supply schedule.

What Factors Affect Supply?

Supply is influenced by prices and consumer demand. The number of suppliers available, the level of competition, the state of technology, and the presence of government support or restriction will play important roles. For certain products like agricultural commodities, supply is also impacted by factors such as weather and crop yields.

What Is the Law of Demand?

The law of demand is a fundamental principle of economics that states that at a higher price consumers will demand a lower quantity of a good, and vice-versa.

What Is Supply and Demand?

The law of supply and demand outlines the interaction between a buyer and a seller of a resource. Supply and demand says that sellers will supply less of a product or resource as price decreases, while buyers will buy more, and vice versa, until an equilibrium price and quantity is reached. It incorporates both the law of supply and the law of demand.

The Bottom Line

The law of supply states that a higher price for a good or service will lead producers to supply more of that good or service to the market. This is because businesses want to increase their profits. When they can get a higher price for something, they will produce more of it than they will of other, lower-priced goods and services.

On the other hand, if prices fall, suppliers won't produce as much. The law of supply is one part of the law of supply and demand.

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The Law of Supply Explained, With the Curve, Types, and Examples

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The law of supply in economics states that as the price of a good or service increases, the quantity of goods or services increases and vice versa. Learn more.

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This web article shows us how to manipulate the data from these charts to our advantage. This is key as just having the chart is irrelevant if we don't do anything about the information. It goes over the 4 major points of

1. Positioning yourself
2. Gaining control of Supply
3. Manufacture Demand
4. Cycle back to the first rule

The first rule of positioning yourself is clearly the most important and fundamental point of the article.  Controlling the information you receive is fundamental on moving forward or else your next chart will have a much worse equilibrium point.

I chose this resource as the final resource as now we would understand the basics of supply, we can now start to see what we can do with it and how to use it. It is a simple resource that again will help start a foundation on what to do next.

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According to basic economic principles, the price of your product or service is determined by supply and demand. This is an unfortunate fact that many of us try to deny, but the science is there:
Supply and Demand: The four basic laws of supply and demand are:

1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity.

2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.

3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.

4. If supply decreases and demand remains unchanged, then it leads to higher equilibrium price and lower quantity.

I am not sure about you, but I don't like these economic principles. I don't believe they are true, and neither should you... unless you want them to be true for you. If you're willing to think and act strategically, you can easily manipulate the laws of supply and demand. It should be surprising to learn, however, that by manipulating the laws of supply and demand, you can make more profit in less time and with far fewer headaches.

Manipulating supply and demand is actually not difficult since there are only two variables involved: supply and demand. If you're able to gain control over these two variables, you will be able to gain control of your pricing and profit margin. Over the past 3 1/2 years, I've become a serious student of learning how to defy the Law of Supply & Demand, and the results have been staggering. Our average price of a website has gone from less than $1,000 to now over $4,000, and our margins have gone from less than 10% to routinely in the 30% to 40% range, all as a result of the lessons I've learned.

Organize your money making ideas in one place across all the document apps you use.

Lesson #1: Positioning Yourself as a Rare Commodity

Diamonds are a rare commodity, right? Wrong! Actually, some of the largest diamond producers in the world have vaults full of diamonds, and if they were to release them into the market, diamond prices would plummet. This perception of diamonds being rare began with brilliant marketing done by De Beers. You may have heard the famous tagline they coined: a diamond is forever. In fact, in 2000, Advertising Age magazine named "A Diamond Is Forever" the best advertising slogan of the twentieth century.

At the core, what De Beers and the other diamond companies did was position themselves in the way their prospects wanted to feel. They understood that their prospects wanted to feel successful, important, better than others, caring and committed. De Beers made sure that its position was aligned with what its prospects desired and then simply advertised to those desires.

What do you think would have happened to De Beers if its stores were in the bad part of town and had holes in the carpet, rude sales reps and one carat diamonds starting at only $10.00? If you guessed that they would immediately ruin the rare commodity status that they had worked so hard to obtain, you are exactly right. Yet, this is exactly what most entrepreneurs do. We work valiantly to position and market our product or service, and we destroy all our effort because of one or two simple things.

Lesson #2: Gain Control Over Supply

No, I'm not advocating that you partake in monopolistic practices although it's reported that is the approach that De Beers took. It's even been reported that De Beers purchased large supplies of diamonds from its competitors and simply stockpiled them in order to gain control over the diamond supply.

So, as an entrepreneur with a limited budget, what steps can you take to take control over the supply of your product or service to the market? Is it realistic for us to think that we could ever control supply? The answer is an emphatic "YES!" In order to do this, however, you must first give careful consideration and thought to your position in the market.

For example, I imagine Nick Swinmurns' initial pitches sounded something like this, "Hey, I have this great idea to start a shoe store that sells shoes online. Would you be interested in being a part of it?" And then I imagine he heard a bit of silence...and a LOT of "NOs."After all, who in their right mind would buy shoes without being able to see them, touch them and, most importantly, try them on?

Tony Hsieh, now famous for taking Zappos from a struggling company to a company with over $1 billion in revenue, almost deleted Nick Swinmurns original voicemail pitching him to invest in the company. Why? Because you can buy shoes anywhere! There is no way you can possibly control the supply...or is there?

If you're familiar with Zappos, think for a minute about how they have controlled supply successfully. Got your examples? Here are mine:

Singular Access - You can buy shoes from thousands of places, but if you're buying shoes from Zappos, there is only one place you can do that at, and that's Zappos.com.

Seemingly Endless Inventory - Sure, you can buy a new pair of boots from your local boot store, but do they have 3,251 different boots from which you can select? I didn't think so.

Surprisingly Remarkable Service - There's nothing worse than going to a store to purchase those new boots and when getting there, having the sales rep to begin divulging all the reasons why today is the worst day of his life. You hear that on the way to his work, his car (which really isn't his, but his girlfriend's) broke down. He had to hitchhike to get to work, and, as luck would have it, the guy that picked him up knew his girlfriend. Not only did he know her, but he knew her very well...too well. Your sales rep proceeds to tell you all the details about the fistfight between him and his girlfriend's other guy friend...and all the reasons why he knew all along his girlfriend was a tramp. All of this takes place while you sit, waiting for him to get the boots, and your two kids are busy destroying the shoe department. Zappos understood the drudgery (for some) of making a trip to the shoe store and the typically poor service delivered there. So, if you want surprisingly remarkable service when purchasing your shoes, you need Zappos.

Shocking Return Policy - Most are familiar with the now infamous Nordstrom tire return story. That's the one where a customer came into the store asking for a refund on the tire they had purchased. Although Nordstrom had never sold tires, the clerk refunded the customer's money. Shocking...right? That's why the story has been shared and passed around for decades, but it's a tribute to the exceptionally liberal return policy Nordstrom has in place. Zappos took a page out of the Nordstrom's playbook when it came to structuring their return policy. You get a full 365 days to return your shoes...unless, of course, you purchase them on February 29th, which entitles you to a 4-year return policy. That's right, you can wait all the way until the next leap year rolls around to return your shoes. Not only is Zappos liberal with the amount of time they give you to return your shoes, but they will cover the expense of shipping the shoes back. What other shoe store will match that return policy?

Shopping in Your Underwear - I'm not advocating it, but if you choose to do so, you can order your next pair of shoes while sitting on your sofa in your underwear. This makes shopping for shoes easy. And with free shipping both ways, what do you have to lose? They have made shopping for shoes on Zappos.com truly risk free. If you want the largest selection of shoes in the world, remarkable customer service, an industry leading return policy AND the experience of shopping while sitting in your pink polka dot underwear at home...then you have only ONE choice, and that's Zappos.com. You see now how they control the supply.

Here's how you control your supply:

Your Schedule

What about you? How can you control supply? Let's assume that you are the proud owner of a marketing consulting business. You are the secretary, the IT guy, the salesman and the consultant. For the sake of this example, let's assume that you are a little less than busy. Okay, let's be honest. You desperately need a few new clients. The phone rings, you answer (which you shouldn't be doing), and it's your dream prospect wanting to schedule an appointment with you.

Your, and my, natural reaction is to say I can meet any day and any time you want to meet. In fact, if you say this, you would make a huge mistake. By admitting that you can meet with your prospect at any time, you are admitting that your schedule isn't very full. If you're admitting that your schedule isn't very full, you are indirectly admitting that you must not be very good at what you do. After all, if you're so great at providing marketing advice, wouldn't your schedule be fully booked?

Don't fret! The situation isn't as dire as you may believe. You control your schedule, don't you? You determine when you are available, right? Of course, you do. Although you may not have meetings with other clients and prospects, you should have appointments scheduled with yourself. You have to study the latest marketing techniques, you have proposals to write, phone calls to make and children to take to softball practice. You are busy! You only have a limited supply of time, so be sure your prospective client knows this.

Your Position

Becoming the most respected marketing consultant is a difficult challenge, one that I wouldn't recommend attempting. However, becoming the number one direct response marketing consultant in the lawn care industry isn't so difficult. Notice the difference? One is very vague and broad, and the other is very narrow and specific.

Trying to position yourself in the general market as the most respected marketing consultant is a lot like a novice mountain climber deciding to attempt to summit Mount Everest as her first mountain. This novice climber will quickly discover that she simply doesn't have the stamina to reach the peak, and she will quickly give up on her lofty goal. This is exactly what most entrepreneurs do. They try to summit the biggest peak first, fail, and then lose hope.

The smart novice mountain climber understands his limits and picks smaller peaks to conquer before setting Everest as his goal. Once he summits his first mountain, he gains confidence, recognition and credibility as a true mountain climber. He is then able to use the skills and knowledge he obtained while summiting the smaller peaks to successfully climb Everest.

If you're going to succeed in your chosen market, you must first position yourself as the one and only in your field. And the only way to do this is to pick a small market and lay claim to your title. By positioning yourself in this manner, you immediately gain control over supply while also manufacturing demand for yourself.

Lesson #3: Manufacture Demand

People like purchasing and doing business with those in demand. Think Apple, Lamborghini, the hottest club in L.A., Hotel Zaza, and Richard Branson. All are in demand. Everyone wants to either have one or be associated with one. If you carefully examine each, you'll discover that all have premium prices associated with them. They have all successfully manipulated the law of supply and demand by manufacturing demand. However, Apple makes the easy case study on how to manufacture demand. Here's how they manufacture demand:

Begin with Evangelists

They are brilliant at generating a buzz around the latest to-be-released gadget. Through careful study, you'll discover that Apple always begins the process of manufacturing demand with their evangelists. They fill an auditorium with journalists, bloggers, and other influencers and then wow them with all the new features and benefits of the gadget.

Tell Them What to Share

At the Apple release events, every portion of the event has been carefully engineered and rehearsed to ensure one thing: that their evangelists understand the core message Apple wants to carry them back to their markets. Not only do they want them to understand their core message, but they also want them to influence exactly how it is communicated.

Plant Seeds

Have you ever noticed how before every big gadget release from Apple, a prototype of the gadget ends up getting left in a restaurant or club and magically ends up in the hands of a reporter? Coincidence? Maybe, but I doubt it. Although Apple would never admit it, I'd be willing to bet that these "accidents" are carefully planted by Apple.

Water the Seeds

It never fails that as an Apple release is drawing near, more information is leaked to their evangelists. They magically find fuel to add to their evangelists fire to help them spread the word.

Allow the Seeds to Germinate

Apple always announces the release of their newest gadget well before its release date. This gives adequate time for the evangelists to spread Apple's message and for the critics to launch their attack. Having critics is vital to the spread of Apple's message. This battle between critics and evangelists causes both to become more entrenched in their beliefs about Apple's products. It causes their evangelists to passionately defend their beliefs and support of the soon-to-be released gadget.

What About You?

With your limited budget and limited time, what can you do to manufacture demand? The great news is that you can follow Apple's process but on a smaller scale. The first step is to identify and understand your evangelists. You have to treat them differently than your regular customers. You have to give them access to and information about your new product or service. You have to tell them what message to spread and how to spread it.

Don't complicate the process. Keep it simple. Just do it.

Lesson #4: Never forget Lesson #1
I'm serious. Don't forget Lesson #1.
Conclusion

It all sounds too easy, doesn't it? All you have to do is convince your clients and prospects that you are a rare commodity. But how can you pull that off with what you sell? DeBeers did it with diamonds. Many other companies, both small and large, have done the same with their products and services.

You just have to figure out a way to control the supply of what you produce or provide. That's not possible with your product? Zappos could have said that too. After all, there are a million shoe stores, but they are the only one to provide the freedom and quantity that they do. What can you provide that others in your market can't? And lastly, start creating your own demand.

"But this all sounds like conspiracy theories and shady business practices." Keep telling yourself that while your competitors run off and start making their own demand like Apple did. So, yeah, it is easy. You just have to actually put these formulas into practice.

About The author: Wayne Mullins is the founder of Ugly Mug Marketing and the author of So You Have a Website...Now What? Wayne and his team work with some of the biggest names on the web helping them stand out from the competition and make more money. You can read more on his blog.

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How to manipulate the law of supply and demand...and make a lot more money

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According to basic economic principles, the price of your product or service is determined by supply and demand. This is an unfortunate fact that many of us try to deny, but the science is there: Supply and Demand: The four basic laws of supply and demand are: If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity.

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What i learned the most was just how important the law of supply really is. After going into details and reading through the articles i realize that these concepts are the foundation that hold every company together regardless of the product. This could be tied with demand as well but understanding supply would help the development of a new product too by connecting the dots.

A real life example of this would be the cost of produce. The price of produce will steadily increase in the winter months which makes sense because farmers cannot grow it. While that ties in with slightly other topics this could mean that all those farmers are now purchasing it too. so now the demand has gone up as well as the supply going down.

If I could pass on any knowledge to a family member it would definitely be the Importance of supply. Understanding it is one thing but understanding why it is important to know is another. Having that foundation of understanding why will hopefully spark in interest in diving deeper in. I find that I understand things more when I know its importance. I don't really want to learn something that doesn't benefit me at all like how to extract oil.