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Demand and supply are the basic rules of economics that determine how the price is determined.

That’s it.

  • The price is easy to rise if there are many people who want
  • If the product is too low, the price is easy to fall

If you hear only this, you will see it.

But there are quite a lot of prices in this way, from stock price, real estate, exchange rate,ガソリン price, Amazon sale, and super discount.

When you look at the price, it is easy to understand not only whether it is a good product, but also whether the quantity you want to sell is strong.

What is demand?

Demand is the amount of people who want to buy.

If you make a little more everyday, it is "how many people want it?"

For example, the following conditions are high demand.

  • Many people want popular game machines
  • Sign up for a new smartphone
  • Sign up for a live ticket
  • More people want to buy stock in business forecast
  • More people want to have a dollar than a circle

The price increases when demand increases.

Simple.

If there are many people who want to sell, it is because the seller needs to sell cheaply.

What is supply?

Supply is the amount of products sold.

It is easy to understand how many products and sales orders are on the market.

For example, the following conditions are often supplied:

  • Large inventory
  • Mass production in factory
  • Used products
  • More people want to sell shares
  • More people buy dollars by selling circles

The price will be lower if the number of buyers increases.

If there are many people who want to sell, but there are few buyers, you can not sell if you do not lower the price.

Prices move in balance between demand and supply

The price depends on the balance of demand and supply.

The basics are:

ContactPrice Movement
More demandEasy to climb
Reduced demandEasy to down
Increased supplyEasy to down
Reduced supplyEasy to climb
More demand and less supplyEasy to grow
Demand is low and supply is highGreat downward

This is a limited product.

The price is easy if there are only 100 people who want it, and there are only 10 products.

On the other hand, there are 100 products, and if there are only 10 people who want it, you can sell it.

Why the price rises

When the price rises, the following one occurs.

  • More people want
  • Insufficient products
  • More people think that they will be higher in the future
  • Less alternatives
  • Sellers can become strong

For example, the demand for air conditioners increases when it becomes hot.

If you want to buy air conditioner at once, installation work will be mixed. In such a case, delivery time and inventory are more important than the cheap price.

Real Estate

There are many people who want to live in the popular area, and if the number of properties is small, the price will be easier.

Why is the price lower?

When the price is lower, it is reverse.

  • Reduced buyers
  • Inventory
  • More similar products
  • The seller wants to dispose of it quickly
  • The peak of demand is over

This is the pre-opening sale of Super.

The side dish is hard to carry over until the next day, so if the shop closes, the seller will be lowered. Because the supply remains in the time when the demand is low.

Amazon and。ten stock disposal sale is also close.

When you look at a large discounted product, it will be difficult to fail if you think about "Why cheap?"

Stock price is also moved by demand and supply

The stock price is also a balance of people who want to sell.

Even if the performance is good, the stock price may not be higher if it is already too expected.

On the other hand, even if the performance is not good, there are few people who want to sell, and the stock price may rise if you gather.

Examples of easy stock price

  • Upward revision of business forecasts
  • Increased sales and stock purchases will be announced
  • Popular as a theme strain
  • Buying foreign investors
  • Funds are concentrated in low sales

Examples of easy stock prices

  • Financial results fall below expectations
  • Inc ing profit settlement
  • Deterioration of the whole industry
  • Increased interest rate and lowered stock appeal
  • Revenue of Credit

In investment, it is not enough to be a good company.

Is there a growing number of people who want to buy the stock now? It is also necessary to see this supply and demand.

Foreign exchanges move by demand and supply

Can be explained by the demand and supply of currency.

Tag

When more people buy dollars by selling circles, it is easy to become Yen cheap and Dollar high.

For example, if the U.S. interest rate is high, the number of people who want to operate in dollars increases.

As a result, the movement to buy a dollar is increased by selling a circle, making it easier to become a circle cheaper.

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On the other hand, if the number of people who want to buy a circle is increasing, it is easy to increase the circle.

When the financial market is unstable, the yen may be bought. The movement of Japanese companies to return the profits from overseas may lead to a yen purchase.

Foreign exchanges include interest rates, trade, investment funds, and central bank policies.

However, it is the balance of people who want to buy currency.

Demand and supply in daily life

Demand and supply are not just about news.

It is usually happening in everyday shopping.

HomeHow to see supply and demand
Delicates before closingNo time to supply
Overnight Hotel RatesIncreased demand and limited number of rooms
New Game Machine Resale PriceHigh demand and low supply
Summer Air Conditioner PriceMore demand in the heat
Winter Clothing Spring SaleDemand falls and wants to dispose of inventory
Popular area rentHigh demand and limited number of properties

When the price changes, the view of the news changes when considering whether the demand changes or whether the supply changes.

Easy to misunderstand for beginners

misunderstandingIn fact
High quality productsIf there are few people who want it, it will be high
Cheap Goods BadInventory disposal and seasonal factors may be cheap
The price is free to decideaffected by market and competition
Stock price is determined only by business performanceIt also affects expectations, supply and demand, interest rates, and capital inflow
NewsInfluence on import price and travel expenses

If you know the demand and supply, you will have a habit of thinking about "why is cheap?" and "why is high?"

This habit can be useful for investment and shopping.

How to use

When you see the demand and supply, it is easy to understand by asking the following questions:

  • Are you looking for someone you want?
  • Is there enough volume to sell?
  • Is there any stock?
  • Is there a product instead?
  • 、 you’re just a demand or a long-lasting demand
  • Is there a person who buys even if the price rises?

Find out more about your investment.

  • Is that good material not woven into stock price anymore? Are there many people who want to sell?
  • Is there a short-term fund?
  • Is the growth of performance and the rise of stock price合?

Demand and supply are not just a memorable item.

It is a tool to see the back side of the price.


Demand and supply are the basic rules of price.

The following points are:

  • Demand to Buy
  • The amount sold
  • The price rises when demand increases
  • The price is lower when the supply increases
  • Related to stock price, foreign exchange, real estate, sale price
  • See the strength of supply and demand as well as whether a good product

First of all, think about this when the price is moving.

“Is there more people to buy?”

“Is there enough things to sell?”

“Is there any inventory?”

By looking at these three, economic news and investments are quite easy to understand.


This article is for educational and informational purposes only, based on public information. It is not a recommendation or solicitation to buy or sell any specific security or financial product. Although care is taken with accuracy, the content and future investment outcomes are not guaranteed. Final investment decisions should be made at your own judgment and responsibility.