Demand

A question kids usually have is when someone mentions demand. When they hear this they'll ask the question "What is demand?" Usually the person who is talking about demand says a quick little explanation on the topic like "Demand is what, when, and how many people want it" and go right back to talking. Now this is what makes the kid go back to playing and forget about the topic but What really is demand? Here is the answer in this passage!

Demand is very important! Five things change demand! The Five things are:

  1. Popularity.

2.Substitutes Example: If slime becomes really expensive then maybe you’ll buy a substitute like glue and make it yourself 

3. Price of compliments Example: If marshmallows go down then you’ll probably demand more chocolate  (If you like S'mores)

4.You make more money Example: You get more money for doing chores or birthday money you will probably demand more of your favorite things or hobbies

5. Time of the year. You will probably not be a lot of demand for painted snow boots in the middle of summer or painted flip flops in the middle of winter so if you think about it correctly you realize that this is a very important thing to think about while making a business! We now know there is seasonal demand.   So now that leaves us to Not just seasonal  demand but we have to think about what is happening in the world right now? Co-vid 19 Right! Are people going to like having people over to petsit during this time? Probably not. So what are they going to want? Let's look at the things that stores are running out of:

1: Toilet Paper

2: Meat

3: Hand sanitizer 

4: Wipes

5: Math books for kids

Now what do you think people want out of these 5 items (There is LOTS more)

You would probably get a lot of money selling toilet paper then selling lemonade right now.Let's do another scenario about the pandemic. What is going to sell better toilet paper or makeup? Probably Toilet paper because we are all shelter in place. People are worried about running out of toilet paper (essential thing) than running out of makeup (non-essentials thing). Now we know we have seasonal demand and Covid 19 demand but there is also emotional demand. You might be thinking what does people's emotions have to do with demand? Well when you’re sad what do you buy online? Maybe a stuffed animal, a pet, comfortable clothes, or slime. People end up buying things to help their emotions. So a stuffed animal because you can snuggle with it or a pet to help you if you’re lonely. Comfortable clothes help you with bad times like your Uncle died! Or slime to help you empty all your stress. That is emotional demand.

Supply is how much of a quantity is available at a certain price. Five things shift the supply: 

1. The number of people selling goes up  

2.The price of the things you need to make it go down. 

3. Technology makes it easier to make the product 

4. Expectations Example: If you expect people to buy more sea-hawks fan products if they win the super bowl then you'll make more

5. Prices of other things you can make Example: If you make hats and shoes and the price of hats goes down then you might make more shoes.