How Does Supply and Demand Affect Business Decisions?
Supply and demand directly impact various business decisions, including:
1. Product Development: Entrepreneurs can decide which products or services to develop by analyzing market demand. 2. Inventory Management: Understanding supply helps in maintaining an optimal level of inventory, reducing costs associated with overstocking or stockouts. 3. Expansion Plans: Entrepreneurs can plan their business expansion based on the demand in different geographic or demographic segments.