MJ Industries

Introduction As consumers, we desire products and services to be available when we need them. Similarly, suppliers aim to produce the exact amount of product that will be demanded. Any surplus product just takes up space and will eventually be sold at a discount. Conversely, any shortage of products will cause consumers to be disgruntled. The Dance of Supply and Demand Supply and demand act together, where suppliers aim to charge the highest price possible, while buyers aim to pay the lowest price possible. They negotiate until they hit an equilibrium price in the middle. This is the point where quantity demanded equals quantity supplied, and that’s when people start to buy, because that’s the price that they’ll accept. Market Equilibrium Price and Quantity In the market equilibrium, buyers want to pay the lowest price possible. For instance, they would be comfortable paying $1.00 per unit per kilogram. However, for sellers, $7.00 is the best price to sell at because they’ll make the m...