1.

ENUMERATE SOME (A) ADVANTAGES AND (B) DISADVANTAGES OF LEARNING THE CONCEPT OF
DEMAND AND CONCEPT OF SUPPLY.
2. ENUMERATE SOME COMPARISONS AND CONTRASTS OF THE CONCEPT OF DEMAND AND CONCEPT OF
SUPPLY.

1A. ADVANTAGES

A. Learning the concept of demand and the concept of supply helps us to know the prices of the services
and goods and thus if we are individuals that are always thinking of saving money we can decide when,
what and how much to buy.

B. Businesses will know or it helps them decide the price of an item and how many will be produced in
order to allocate resources in the most cost-effective and efficient way.

C. It helps businesses understand the big picture and make better decisions on resource allocation to
create the most value for customers, fulfill customer demands, and generate more sale and make more
profit.

D. Learning both the concept can help in predicting and analyzing when sales are likely to happen to
business so they can better plan their production, warehousing, shipping schedules and etc.

1B. DISADVANTAGES

A. One of the disadvantages in learning the concept of demand and the concept of supply is that
sometimes it is more complicated than helpful. Because every customer will not behave the same as the
year before and I believe it is the same for businesses.

B. Assumption and predictions made by learning the concept of demand and the concept of supply
doesn’t always comply with as a result there is an imbalance or there is shortage and surplus.

C. In a market characterized by perfect competition the concepts may affect the competition of
businesses especially when demand is limited for they are force to lower prices to stay competitive
decreasing their profit margins.

2A. COMPARISONS

A. Both the concept of supply and the concept of demand determine the prices and quantities of most
goods and services available in a given market.

B. The concept of demand and the concept of supply both rely on the consumers need and they both
have the relationship to determine the demand or supply compared to a price.

C. Both concepts influence the price of a product and also are affected if there is a change in price.

D. There is a point wherein the concept of demand and the concept of supply are balanced for both
have the tendency to move towards an equilibrium price.

E. The concept of demand and the concept of supply is both is essential because it helps investors,
entrepreneurs, and economists to understand and predict market conditions
2B. CONTRASTS

A. The concept of demand is in the buyers or consumers’ perspective while the concept of supply is in
the sellers or suppliers’ perspective.

B. Demand has an indirect relationship with the conversely the supply has a direct relationship with
price.

C. The concept of demand is determined by the preferences and tastes of consumers while the concept
of supply is determined by the production cost or the stock availability by the seller.

D. Demand is the willingness and ability of consumers to buy goods, while supply is the willingness and
ability of producers to sell goods.

E. There is an inverse relationship between the concept of demand and the concept of supply wherein if
demand rises there is a shortage in the supply and when a supply is enough the demand falls short.