Does Demand Create Supply or does Supply Create Demand?

mrsticky005 · 05-01-2011, 04:11 AM

Is supply produced in response to demand for a product or service?

Or is the demand for a product or service a response to it's production and supply?

Debate.

Wooster · 05-01-2011, 04:17 AM

What people what are things that fulfill desires and needs i.e. hungry, comfort, entertainment. When a product fulfill one or more of these, then demand for that product is created.

Observe, I want to play tennis but I suck. :[ Wii and Wii Sports is created. Demand is created for Wii and Wii Sports. Wiis are sold out. More Wiis are created. More Wiis are sold out. I no longer want to play tennis even thought I still suck. Wiis sit on store shelves.

mrsticky005 · 05-01-2011, 04:54 AM

Quote:

Originally Posted by Wooster

What people what are things that fulfill desires and needs i.e. hungry, comfort, entertainment. When a product fulfill one or more of these, then demand for that product is created.

Observe, I want to play tennis but I suck. :[ Wii and Wii Sports is created. Demand is created for Wii and Wii Sports. Wiis are sold out. More Wiis are created. More Wiis are sold out. I no longer want to play tennis even thought I still suck. Wiis sit on store shelves.

Wiis on sale!

Bacon · 05-01-2011, 09:42 AM

Depends on the good/service. :]

Danielle · 05-01-2011, 12:18 PM

There has to be a scarcity of the product for there to be any sort of demand. Or at least that is one aspect of supply and demand we learned. If too much is available of a product but there is no demand then there is a depreciation of value of the product. The law of demand in Macroeconomics states that an increase in price causes and decrease in quantity demand. That being said there is always the chance that a change in either price or supply will decrease demand of the the product.

Rasengan- · 05-01-2011, 08:36 PM

It is demand because of the simple concept 'ceteris paribus' (all other things being equal or constant).

The application of theoretical modelling of reality is difficult for obvious reason. You will be running in circles if you attempt to answer this question in this technical sense.

05-01-2011, 04:11 AM	#1
mrsticky005 Join Date: Apr 2009 Location: In the White Text House Posts: 13,910 Rep Power: 23 Member's Picture Albums	Does Demand Create Supply or does Supply Create Demand? Is supply produced in response to demand for a product or service? Or is the demand for a product or service a response to it's production and supply? Debate. __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. Spam once and the forum will be annoyed. Spam twice and warnings will be deployed Spam thrice and a infraction you will receive Spam 8,984 times and a FAIL Agent you''ll soon be. ...At least in my case. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

05-01-2011, 04:17 AM	#2
Wooster Special Jonin Candidate Join Date: Jan 2010 Posts: 36,974 Rep Power: 32	Re: Does Demand Create Supply or does Supply Create Demand? What people what are things that fulfill desires and needs i.e. hungry, comfort, entertainment. When a product fulfill one or more of these, then demand for that product is created. Observe, I want to play tennis but I suck. :[ Wii and Wii Sports is created. Demand is created for Wii and Wii Sports. Wiis are sold out. More Wiis are created. More Wiis are sold out. I no longer want to play tennis even thought I still suck. Wiis sit on store shelves. __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

05-01-2011, 09:42 AM	#4
Bacon Special Jonin Candidate Join Date: Sep 2009 Location: Walkin' through the candy-lane with Tifa.~ -.- Posts: 29,646 Rep Power: 27 Member's Picture Albums	Re: Does Demand Create Supply or does Supply Create Demand? Depends on the good/service. :] __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

05-01-2011, 12:18 PM	#5
Danielle Special Jonin Candidate Join Date: May 2010 Location: Cali Posts: 14,700 Rep Power: 11	Re: Does Demand Create Supply or does Supply Create Demand? There has to be a scarcity of the product for there to be any sort of demand. Or at least that is one aspect of supply and demand we learned. If too much is available of a product but there is no demand then there is a depreciation of value of the product. The law of demand in Macroeconomics states that an increase in price causes and decrease in quantity demand. That being said there is always the chance that a change in either price or supply will decrease demand of the the product. __________________

05-01-2011, 08:36 PM	#6
Rasengan- Chunin Exam Participant Join Date: Apr 2010 Posts: 736 Rep Power: 7	Re: Does Demand Create Supply or does Supply Create Demand? It is demand because of the simple concept 'ceteris paribus' (all other things being equal or constant). The application of theoretical modelling of reality is difficult for obvious reason. You will be running in circles if you attempt to answer this question in this technical sense.

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