Changes

3.)  When the supply of a good or service increases, the market price drops due to increased competition.  Conversely, when the demand for a good or service increases, prices increase because the market can sustain by selling goods at such inflated prices.  Usually, a demand for a good is the first step in this process, followed by the increase in prices.  This is followed by many new businesses springing up in that particular industry, which leads to competition among businesses, which naturally causes the price to drop, assuming this is a free market.  In management we would call a successful industry that is growing quickly a rising star, and an industry that is growing slowly but is very profitable a cash cow.  Once you obtain a cash cow, the thinking is to invest in a rising star, as to make your business more profitable in the future.

3.)  When the supply of a good or service increases, the market price drops due to increased competition.  Conversely, when the demand for a good or service increases, prices increase because the market can sustain by selling goods at such inflated prices.  Usually, a demand for a good is the first step in this process, followed by the increase in prices.  This is followed by many new businesses springing up in that particular industry, which leads to [[competition]] among businesses, which naturally causes the price to drop, assuming this is a free market.  In management we would call a successful industry that is growing quickly a rising star, and an industry that is growing slowly but is very profitable a cash cow.  Once you obtain a cash cow, the thinking is to invest in a rising star, as to make your business more profitable in the future.

4.)  What the supply and demand curve does not take into account is time.  We know that the fruit will only stay ripe for so long; therefore our window to sell the fruit is limited.  Now, because we have a surplus of ripened fruit, and we know generally how much fruit we can sell at a given price in a given amount of time, we know that if we do not lower the price, we will waste product.  So rather than being stubborn and not lowering the price, it makes far more sense to cut your losses and reduce the price of the goods so a greater quantity can be sold, even if it means lowering the price.

4.)  What the supply and demand curve does not take into account is time.  We know that the fruit will only stay ripe for so long; therefore our window to sell the fruit is limited.  Now, because we have a surplus of ripened fruit, and we know generally how much fruit we can sell at a given price in a given amount of time, we know that if we do not lower the price, we will waste product.  So rather than being stubborn and not lowering the price, it makes far more sense to cut your losses and reduce the price of the goods so a greater quantity can be sold, even if it means lowering the price.