Running Head: SUPPLY AND DEMAND FACTORS Supply and Demand Factors Student’s Name Institutional Affiliation 1 SUPPLY AND DEMAND FACTORS 2 Supply and Demand Factors Demand and supply are economic terminologies which are used to describe the behavior of buyers and sellers in economies. The law of demand states that demand of product or services is inversely proportional to the prices of a commodity. On other the hand, the law of supplies states that 'supplies of a product increase with an increase in the price of the product.' Demand curve and supplies curves are very critical since the management of the company use it in setting the price of a product (Abdul Rahim, Hawari & Zainal Abidin, 2017). The price of the commodity is set at the equilibrium point. The equilibrium point is the point where the forces of demand and supplies meet. At this point suppliers and buyers of the commodities agree on the common price where they will transact. Technically, Nike Company needs to analyze and comprehend forces of demand in the economy to avoid cases of in-equilibrium in the economies (Abdul Rahim, Hawari & Zainal Abidin, 2017). The trend to demand of products and services in any economy depends on various factors such the level of income, tastes and preferences of the consumers, price of the related goods and services, population and demographic composition of the people, and expected change in price of the commodity (Henchion, Hayes, Mullen, Fenelon, & Tiwari, 2017). Increase i ...
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