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Tuesday 29 March 2011

Supply and Demand

Have you ever wondered why the price is always moving? The simple answer is because of the imbalance between supply and demand. Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. Price is a reflection of supply and demand.

  • Prices will rise when demand exceeds supply. 
  • Prices will drop when supply exceeds demand. 
  • Prices will stop/ranging when the supply equal to demand. (this zone also known as cluster)


    Just remember:
    • Supply = Resistance 
    • Demand = Support

    1 comments:

    kitab said...

    http://kitabsupplyanddemand.blogspot.com/2017/09/pattern-supply-rbd-dbd-dan-pattern.html

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