We Demand the Wii!

"Supply and demand." A fundamental phrase that goes as far back as the 18th century, though its inner workings have been in practice throughout history. It is a principle that has been popularized by struggling economies, such as what occurred during the Great Depression of 1929, and what might be going on in many people's pockets at this time. It was questions 42 and 43 on your economics test during grade school economics. It is a concept that makes or breaks economies all over the world.

What is Supply and Demand?

The concept behind "supply and demand" is simple, though putting it into practice takes skill, and keen observation. The law of "supply and demand" states that the equilibrium market price and quantity of a commodity is at the intersection of consumer demand and producer supply. "Huh?" In simpler terms, set the price so that it is almost too good to be true and watch people flock to buy the product, only to find that the product's company cannot keep up with the demand, so the value of the product increases with the demand. Sounds easy, doesn't it? It is almost too easy when executed perfectly.

Initially, many people do not see the point of "supply and demand." They do not recognize we have been players in the game of "supply and demand." As an example, think back as a child. Your mother made eight cupcakes for the seven members of the family. That means there was only one cupcake left after everyone had one. Now what? Who gets the last cupcake? It is all fair game as the value of that cupcake rises as everyone tries to get their hands on it, even though in the end there can be only one partaker. After that cupcake is consumed, the other six members (and probably the greedy seventh member) of the household demand more cupcakes. Has this ever happened at your home? Guess what. That is the idea of "supply and demand."