Supply and Demand

Abstract

With an increased competition in the marketplace, one can observe an increase in product offerings in the market. It has therefore become essential for firms to better manage their supply and demand so that they can better control the supply and demand aspects of their product. The trends in determining demand and supply forecasts are changing, within the 21st century the market forces of supply and demand determined the quantity of each good produced and the price at which is sold. In order to analyze the markets and competition we must interact with how people react to the economy and its economic issues.

Prior to 1999 only a handful of manufacturer’s produced DVD. As a result, the price of DVD players ranges from $ 600 to $ 1000. Which made it easier for consumers to dig in their pockets, many economists considered 1999 the year of the DVD. But since the DVD became the ideal product to buy more than 20 manufacturers’s pushed the price of the DVD down but demand increased. The numbers of DVD kept increasing during 2003. The demand for DVD increased thru the 21st century but yet as technology increased the demand for DVD players slow down with the creation of programs and software that made movie watching easier, but the DVD era is not done, the demand curve will shift to the left as demand slows down, with the increase in new and better ways to watch a movie. In 2007 the U.S. sold more than 10,252,893 DVD players compare to 1997 when they sold 315,316 the demand for DVD players increased rapidly. With many changes in the demand era and manufacturer’s looking for new ways of to entertain the audience. As the demand shift towards the left buyers and sellers will look for the most convenient way to watch a movie or buy a movie, if the cost is within their spending budget or the market becomes competitive. The ultimate factories will have to find a way bring buyers and sellers closer to their ideal taste , Price, and how the expectations will affect the...