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Supply & Demand – Psychological Consumerism

This article focuses on the basic psychological concept of supply and demand economics. Although we can only offer ideas in a preliminary form, we can see that over time, consumer demands have changed from addressing the need to ensure one’s wealth. In 1776, Adam Smith, the founder of modern economics, confirmed the trade process and structure through the prediction that the global economic pattern would change the welfare of the nations and lead to poverty in the past. And according to this belief, Adam Smith did not even imagine this. So much change. (1. Daulet Islamiya 1776)


We can see very easily much of the supply and demand here I will use Apple as a prime example. The market is subdivided into primary, can be harvested, taken from land (oil/diamond) and secondary, which we transform its shape through manufacturing and assembly (steel pipe/cars) with the core industry. What they do, they eventually turn into a high-end industry supporting our high-performance and leisure, social system (insurance/travel agencies) This simple division of the system helps to classify our work environment and us How simple processes go into complex systems. Therefore, apple is the main industry of agriculture, because it was natural for certain regions of the world, and it was easy to provide food and important vitamins. Today through the science of cross-fertilization, apples now come in different sizes, colors, and shapes, and they meet consumers’ needs – you and me. In our example, we only use homemade apples, which can be eaten directly from the tree or purchased at the supermarket.

Apples are a perishable product – they deteriorate. This time it focuses on the price at which the customer will pay. Fresh, clean, stylish apples depend on consumer demand for these types of apples that they can afford high prices. However, as time goes on, the product refreshes and changes worse – the cost of removing apples from the market and making room for new products decreases. If the crop is not bad (because of over-production because of illness, poor weather or pest control), the price may be because of the quality of the apples because of the sale and the low quantity. The price is high if it is still a good product, but now it is less needed and consumer demand is high. If the product goes bad, the price may be too low before it can go any further than the empty stock. To keep prices high (normal market prices), stocks can be deliberately destroyed to reduce supply and artificially raise demand in the market. (This is the oil industry’s strategy to reduce production to maintain oil prices). In the past, the EU has had mountains of fresh produce that has been deliberately kept out of the market to force consumers to pay higher prices. So during the summer, market demand depends on product demand, the quality of the product compared to similar products (other apple shakes), its quality, freshness and taste, and price flexibility, which depends on the shelf life. (How long does it take before a supermarket breaks down) and depends on customer preferences? Supply can affect the price If, ​​if the demand for apples is high and there are not enough apples to supply each one, then the highest price can be sold for sale. However, if there is an extra amount of apple (good harvest year) and the demand is low, the price may fall when trying to sell the product as soon as possible before the breakdown. (Once again, the supplier can destroy a part of the crop or throw away supply to artificially lower prices and keep prices high.)

Import effect:

International trade around the world means that if my country can grow standard apples and your country does not grow – then exporting my surplus product may create a demand for products that are not imported. Getting into the country is difficult. In this situation, countries often exchange products are in demand in each state. They sell oil in commodities because oil is a vital source of energy, but it is not always naturally needed in other countries, or the demand for oil in the First World Economy is so high that they cannot supply their needs. And oil savers cannot import energy from the country. Make your citizens earn money to buy weapons-related to national needs, such as national security or war weapons. Many poor countries have to ask for oil from the First World countries with oil,

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