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A short article that talks about how a high demand can effect the supply.

An article that talks about the how does demand affect the supply, supply and demand model of price determination, there is never a surplus or shortage of goods at the equilibrium level. The market always settles at the point where supply equals demand.

I looked at the market situation of New Zealand company overseas in Japan. Cookie Time Limited is an entrepreneurial, innovation-led food company headquartered in Christchurch, New Zealand. Their business includes franchised distribution and retail, licensing and manufacturing operations. They have recently opened a store in Japan which has met with great success. At the current price there is a shortage or excess demand of cookies. This means that the quantity demanded or the willingness and ability of consumers to purchase cookies at any given price is larger than the quantity supplied or the willingness and ability of suppliers to supply at any given price. Therefore consumers will bid up the price increasing the willingness of suppliers to supply cookies at that price for as the law of supply states as price increases the quantity supplied will increase vice versa ceteris parebus. The increase in price will also have an effect on the demand curve for as the price increases the quantity demanded will decrease as they (the consumers) are less willing to purchase cookies at the higher price. As a result of the increase of quantity cookie time may think about opening more stores in the Japanese market. This is shown in the article for because demand is so high for cookies that cookie time is thinking of opening two more Japanese stores in the next 12 months, and CTIL (cookie time international limited) is also talking with potential partners in Thailand and Malaysia.

Hi David Excellent article. Please could you tell me which economic concept you would like to attach to this article? Also try using the bookmarking tools so you are familiar with them. Best Ms Charles

Manila, Philippines is currently facing a problem where the demand for jobs is far outpacing the supply admits the labour chief. She explained that jobless growth was not an entirely accurate description of the failure of the robust economy since 2010. Unemployment is growing at a steady rate, nevertheless it does not make the job for the government any easier.

Hi Ronald Good article. Please strive to use the highlighting tools in this programme to get some practice. Ms Charles

According to the FIA (Futures Industry Association), gold future contracts have grown the most in China in the past 5 years. The amount of increase of demand for gold contract was 416% in 2013, of that compared to 2008. "Overnight trading" is said to be of the reasons for this immense growth.

Hi Izuru Great summary. However please try using some of the bookmarking tools. Ms Charles

We can see this is a golden opportunity for Australia since its economy status is at the low place. The huge demand of milk powder from China just brought this chance to Australia to supply more thus make money from it to bring back the economy.

Hi Matthew I like the summary. Please try to use economic terminology instead of low place. Also please practice using the bookmarking tools like highlighting etc. Best Ms Charles

Zimbabwe is reviewing it's fiscal policy which is one of the main determinants of government spending which can subsequently lead to an increase or decrease in aggregate demand. Zimbabwe's fiscal policy includes manipulating aggregate demand in order to achieve price stability, employment and overall growth of their economy. The market is now waiting on finance minister Patrick Chinamasa to deliver his mid-term fiscal policy review statement which will guide Zimbabwe's economy for the next couple of years.

Intel has predicted they will make almost a billion dollars less, which is a sign that there is limited demand for PCs.

In this article, aggregate demand is more important than the aggregate supply of the economy. The shape of the Aggregate Supply curve has been the debate of many centuries between Economists.

Copyright holders of newer books exploiting the possibilities price elasticity by finding a new market for the same book by after a period of time offering it a much lower price is an interesting idea. By doing this copyright holders are negating the affect of the PED determinant of books not being a necessity by constantly establishing new markets without paying any more for a new title. However demand for books is still likely to be elastic because of some of the other PED determinants. It is interesting to note that a trusted publisher such as Oxford University Press has been exploiting price elasticity for decades along with many other publishers who would reissue modular and revised editions of books in order to make a profit.

Appropriate article and well done on highlighting the key concepts

The decision Apple made to price the iPhone 5c at $99 on contract price, is seen as the right move due to price elasticity. Although there is expected increase in demand due to the seasonal change of the holiday, Apple decided to take lower margins and hoped for unit volumes to offset as they believed there would have been "no guarantee of price elasticity driving volumes." Off this we can interpret that the price elasticity for the Apple iPhone 5c will be over 1, as they hope that the decrease in price will lead to a greater increase in the demand for the product. They saw the release of the iPhone 5c as having no guarantees as to whether the price elasticity of the product would help generate a greater quantity of sales.

Hi Ronald Appropriate analysis of the article with respect to PED.

The decision to keep the price hight than the competition was a bold move by Microsoft. It may have paid off but they were not to know that it would generate more profits relying solely on the loyalty of their customers to better the PS4. Microsoft originally set their price lower than the competition (xbox 360 cheaper than PS3) in this we can assume that they wanted increased demand for the product (get the product out in the market place) now that they have achieved this they have raised the price above the competition in the hopes of consumer choice allowing them to trump the opponents.

Hi Josiah. Good review on your article