Tuesday, August 11, 2009

Demand and Supply …

Down with typhoid I went to the doctor for a X Ray and while I was returning back home I went to a Fruit vendor to buy some fruits, When I enquired about the prizes , I found them astronomical high. I asked him “ Bhaiya you are quoting really high , what is the reason ? “ He immediately replied in the local language , “ The supply of fruits is reducing due to less rainfall and delayed monsoon , and as more people are falling ill the demand of fruits is increasing which is driving the rate up due to demand supply mismatch “ . I felt that half of the people even after MBA can’t give such an apt reply, what is he doing here selling fruits.

When I was returning back after buying 2 kg of fruits he added one more dimension which was even better , he told me “ As the rate of fruits increases people tends to buy them more ,as the people thing that the dearer the prices better the quality “ . Wow behavioral aspect of fruit selling business!

2 comments:

Hemant K Tailor said...

Demand-Supply fundamentals have never been explained better than this during our curriculum .. right ?

Ankit said...

Economics was not part of our Engineering course , it was only in final year we had a subject which touched it briefly , Final year tak no body was studying :)