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  • Category: Miscellaneous

    Where there is demand there is supply is not really true.

    This basic law of Economics "Where there is demand there is supply" has been misused for a long time. This lockdown due to pandemic has really made lot of unnecessary expenses redundant, which we thought were almost a basic necessity.

    Some of the expenditure that vanished during this lockdown were:
    1. Movies in Cineplex
    2. Eating in restaurants, even ordering online
    3. Shopping in malls
    4. Ordering clothes every fortnight or a month
    5. Throwing lavish parties - Birthday or Marriage
    6. Outstation travel

    Although due to this many sectors have been badly hit, especially the tourism industry but still we have realised that we can survive well enough even without these.

    Marketing and advertising by multinational companies many a times artificially create demand and then fulfill that demand and gradually turn the same into a necessity.

    I have no intent of hurting anyone who may be directly or indirectly related to any of these businesses. I only intend to discuss what ifalls in category of necessity and luxury.

    Members may add to this based on their experience.
  • #708846
    Deman will increase when the supply is short. If the supply is high we will see that demand will be fulfilled. When the items are fully available we will not have any problem in getting the same.
    But when our pocket is full of money, we will go to the market and try to spend them if there is a chance. But in these times of Pandemic, there is no way to spend the money in the ways mentioned by the author. The way of life changed. All are in fear of life and stayed inside and spending their time without going anywhere.
    Yes. The marketing strategy will create demand and people will try to see that they will have all those advertised and initially we feel it is a luxury. But after a few days, it will become a necessity. That is how business people create demand and supply. When we have money all luxuries will become necessities.

    drrao
    always confident

  • #708851
    Demand and supplies are the integral part of economics but when the situation like the pandemic we are worried about the present and not the future. When the demand would escalate, when there is a panic buying, but in this case the buying has been curtailed to large extent not coming out of the home. We have seen there were no buyers for the essentials like vegetables during the covid lock down. Why because we are having the fear that the virus would enter through the vegetables and fruits. So now it has become clear for the economists that whenever there is fear factor the demand and supply chains cannot be the same and would have wider effects. Actually we must thank the pandemic situation because it has taught a big lesson has to how to live with the limited and available resources and not to seek further more.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #708899
    Author is very right in his contention and I also agree that we can survive without luxuries. There are many unnecessary indulgences in our lives and if we do not indulge in them then it would be better for us only. This pandemic situation has taught us many lessons and we have come to gain much insight about our unwanted and 'just to do something' activities. Let us hope that people would have positive takeaways from this crisis.
    Thoughts exchanged is knowledge gained.

  • #708900
    The author said the truth. During the epidemic period, the economy has brought out a new definition of the rule of supply, after the Corona transition period, there will be very significant changes in the Indian socio-economic system. Naturally, this will not affect any one section. On the one hand, it will have a profound effect on the industries and production system, on the other hand, there will be a change in the consumer behavior of the citizens, it is very easy to live a normal life, even without luxuries, life can be made comfortable.
    Swati Sharma

    Keep your Face to the SunShine

  • #708907
    Pandemic situation has created an elements of fear among the people. Their demand, too, has dropped due to their fearness of COVID 19. They are abstaining from purchasing the green vegetables since such vegetables may be the root cause of spread of infection. Similarly we go to the ration shops in our areas only in case of emergency such as shortage of rice, wheat, sugar, pulse etc. But it is strange that the departmental stores are full of items though there is no demand. Here the theory of economics fails stating that in case of absence of demand, supply, too, will drop.


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