analytical essay about demand and supply

Demand and Supply Essay

Introduction.

Economics plays an important role in the healthcare industry in the US. The relationship between different organizations and individuals involved in the production and consumption of health goods and services in the US is a complex one. The economic need of an individual in terms of healthcare is main idea behind the consumption while organizations provide the above needed services.

The healthcare industry is subject to all the economic trends through production of goods and services which in this case are the drugs, equipment and the services rendered by medical professionals. Additionally, it’s also shaped by the forces of demand and supply; demand in this case denoting the willingness and capacity of consumers to pay for the healthcare products on offer.

Supply on the other hand denotes the presence centers that provide medical services and the ability for the manufacturers of these products avail the products to the consumers. Besides the forces of demand and supply, there are economic variables including time, accessibility of drugs and services and user charges as applied in the industry.

The discussion will focus on the above principles of economics as they apply to the healthcare industry in the US. Precisely, the discussion will focus on the supply and demand of endocrinology services in the US. There will also be a discussion on the economic relationship between the availability of these services in the US and the economic variables involved especially cost and access.

Endocrinologists help in the treatment of endocrine disorders associated with diabetes conditions. Besides cancer and heart disease, diabetes is ranked as the other major disease among the American population.

Demand Side

The rise in the cases of diabetes, has led to a rise in demand of endocrinology services in the US. On the other hand however, the number of endocrinologists entering the market in the US has reduced considerably. The situation has therefore created a supply demand mismatch in the availability of these services.

According to Stewart (2008, p. 1), private clinics, publicly run institutions, academic medical centers and the pharmaceutical industry have seen their needs for endocrinologists increase. According to him, the demand for endocrinology services is going to rise further considering the fact that over 44 million people in the US need their services. Additionally, over 50% of the US population being obese means that endocrinologists will be needed more in the coming years.

Supply Side

The above demand is against a supply of slightly above 5000 endocrinologists available in the US according to a 2006 survey. Over 1500 of these are not primary care providers, leaving an average of 4000 endocrinologists in active practice. The above scenario clearly shows demand outstripping supply.

According to Mercer (2009, p. 1), the demand for endocrinology services is likely to rise further as many of the professionals reach retirement age in this decade. The above demand – supply mismatch has had its consequences felt by the consumers of these services in the US.

Economic Variables

Basic economics dictate that the most likely effect when demand outstrips supply is the rise in price of goods and services. Sometimes, it may also affect the quality of the service being delivered and how it’s being delivered. Mercer (2009, p. 1) asserts that the disparity in the demand and supply of endocrinologists in the US has resulted in the failure to treat endocrinology patients in the traditional office model.

Stewart concurs in his analysis when he says that the shortage of endocrinologists negatively impacted access to care by patients with diabetes, obesity, adrenal disease and thyroid cancer. This shortage of endocrinologist has led to limited access and care of endocrinology patients. There are verified reports of patients waiting up to 6 months to gain access to an endocrinologist. As expected, the costs associated with accessing the services have risen.

This is partly because of the negative consequences of the failure to treat the condition appropriately due to waiting time and largely because of the economical factor of less supply. Instead they have adopted the volume solution to resolve the problem. Additionally, the industry has adopted an approach of engaging primary care physicians to handle endocrinology patients. This primarily aims at availing wide access to the services to the people who need them.

Rizza et al (2003, p. 1985) asserts that the demand for endocrinologists will exceed supply for the next two decades at least up to the year 2020. According to a supply model developed by the Rizza, the difference between the demand and supply of these services will reduce in the first decade of the 21 st century as new professionals enter the field.

However, expected retirement of many endocrinologists who will be above 50 years during the decade will widen the demand and supply mismatch. There is sufficient reason to believe that improved supply of endocrinologists to the market in the US will eliminate most of the problems brought by the shortage.

There is need to prop up the supply of endocrinologists in the US through the implementation of measures influenced by the factors of supply. First, it’s important that the trends in residence fellowships be improved so that the number of endocrinologists who complete the fellowships every year increases.

Secondly, there is need to raise the retirement age of medical practitioners but the raise should mainly target the endocrinology profession. That way the rate of attrition from the profession will be stemmed and effectively improving supply of the professionals. The above factors are expected to boost supply of the professionals to the market to end the bridge the gap between their demand supply deficits.

The above analysis represents the integration of the principles of economics especially demand and supply in the healthcare industry. Medical services in this case endocrinology are treated like any other commodity that I available in the market for the highest bidder. Like in pure economics, the economic variables of cost and access to good and services are affected by demand and supply.

A rational analysis on the number of professionals in the field of endocrinology in the US and the demand that is currently available easily suggests a deficit in supply. The mismatch between the forces of demand and supply therefore has led to the rise n the costs associated with endocrinology services.

Additionally, access to the services has also been affected. Increasing the supply of this service will weigh down on demand and an equilibrium position will be achieved. The measures suggested in the last part of the discussion are meant to increase the supply through the supply chain which in this case is the training institutions.

Mercer, A. (2009). Supply and Demand. Diabetes Health. Retrieved from https://www.diabeteshealth.com/

Rizza, A.R. et al. (2003). A model to determine workforce needs for endocrinologists in the US 2020*. Journal of Clinical Endocrinology & Metabolism 88(5).1970- 1987.

Stewart, A. (2008).The United States Endocrinology Workforce: A Supply-Demand Mismatch. The Journal of Clinical Endocrinology & Metabolism April 1, 2008 vol. 93 no. 4 1164-1166.

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Introduction to Demand and Supply

Chapter objectives.

In this chapter, you will learn about:

• Demand, Supply, and Equilibrium in Markets for Goods and Services
• Shifts in Demand and Supply for Goods and Services
• Changes in Equilibrium Price and Quantity: The Four-Step Process
• Price Ceilings and Price Floors

Bring It Home

Why can we not get enough of organic foods.

Organic food is increasingly popular, not just in the United States, but worldwide. At one time, consumers had to go to specialty stores or farmers' markets to find organic produce. Now it is available in most grocery stores. In short, organic has become part of the mainstream.

Ever wonder why organic food costs more than conventional food? Why, say, does an organic Fuji apple cost $2.75 a pound, while its conventional counterpart costs $1.72 a pound? The same price relationship is true for just about every organic product on the market. If many organic foods are locally grown, would they not take less time to get to market and therefore be cheaper? What are the forces that keep those prices from coming down? Turns out those forces have quite a bit to do with this chapter’s topic: demand and supply.

An auction bidder pays thousands of dollars for a dress Whitney Houston wore. A collector spends a small fortune for a few drawings by John Lennon. People usually react to purchases like these in two ways: their jaw drops because they think these are high prices to pay for such goods or they think these are rare, desirable items and the amount paid seems right.

Visit this website to read a list of bizarre items that have been purchased for their ties to celebrities. These examples represent an interesting facet of demand and supply.

When economists talk about prices, they are less interested in making judgments than in gaining a practical understanding of what determines prices and why prices change. Consider a price most of us contend with weekly: that of a gallon of gas. Why was the average price of gasoline in the United States $3.16 per gallon in June of 2020? Why did the price for gasoline fall sharply to $2.42 per gallon by January of 2021? To explain these price movements, economists focus on the determinants of what gasoline buyers are willing to pay and what gasoline sellers are willing to accept.

As it turns out, the price of gasoline in June of any given year is nearly always higher than the price in January of that same year. Over recent decades, gasoline prices in midsummer have averaged about 10 cents per gallon more than their midwinter low. The likely reason is that people drive more in the summer, and are also willing to pay more for gas, but that does not explain how steeply gas prices fell. Other factors were at work during those 18 months, such as increases in supply and decreases in the demand for crude oil.

This chapter introduces the economic model of demand and supply—one of the most powerful models in all of economics. The discussion here begins by examining how demand and supply determine the price and the quantity sold in markets for goods and services, and how changes in demand and supply lead to changes in prices and quantities.

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Page One Economics ®

The science of supply and demand.

"A body in motion tends to stay in motion unless acted on by an out-side force."  

—Isaac Newton

Science Is Everywhere

We live in a world governed by the laws of science. From gravity, to electromagnetism, to sound waves, our lives are filled with scientific phenomena that structure and affect every facet of our daily routine. As a species, we have attempted at every turn to channel the laws of science to our own benefit, constantly working to build better products and to develop improved means of manufacturing. However, sometimes science unveils itself in unanticipated ways—ways that often force its will on the distribution of goods in markets.

Figure 1 Personal Consumption Expenditures

SOURCE: FRED ® , Federal Reserve Bank of St Louis; https://fred.stlouisfed.org/graph/?g=r60z , accessed January 2021.

Few events demonstrate this fact better than the COVID-19 pandemic of 2020. As this new viral strain spread around the globe, many businesses in the United States closed or reduced workers' hours, sometimes by the choice of businesses—to prevent employees from catching the virus—and sometimes due to government stay-at-home orders. 1 In the early months of the pandemic, virtually no industry or market remained unaffected as the economy declined: Consumer spending on goods and services dropped by 6.7 percent in March and 12.7 percent in April (Figure 1) and the unemployment rate rose from a 50-year low of 3.5 percent in February to a post-Great Depression record of 14.7 percent in April (Figure 2). 

Figure 2 Unemployment Rate

SOURCE: FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?g=r5AM , accessed January 2021.

Supply and Demand

COVID-19 affected markets the same way they are affected by any outside force—through supply and demand . In competitive markets , supply and demand govern the ways that buyers and sellers determine how much of a good or service to trade in reaction to price changes.

The law of demand describes the behavior of buyers in markets: As the price (P) of a good or service rises, the quantity demanded (Q D ) of that good or service falls. Likewise, as the price of a good or service falls, the quantity demanded of that good or service rises. Consider your favorite snack food. A downward sloping demand curve indicates that as the price of the snack increases, you would be able and/or willing to buy a smaller amount. This relationship is demonstrated by the downward sloping demand curve in Figure 3. When the price increases from P 1 to P 2 , the quantity demanded decreases from Q 1 to Q 2 .

Similarly, the law of supply describes the behavior of sellers in markets: As the price of a good or service rises, the quantity supplied of that good or service rises. Like­wise, as the price of a good or service falls, the quantity supplied of that good or service falls. Therefore, as the price (as determined by the market) of your favorite snack rises, firms are willing to produce more units. This relationship is demonstrated by the graph of the upward sloping supply curve in Figure 4. When the price increases from P 1 to P 2 , firms are willing to supply a greater quantity. That is, the quantity supplied increases from Q 1 to Q 2 .

Market prices are constantly adjusting to bring into balance the amount desired by buyers and the amount sold by sellers. This balance is found at the equilibrium price , where supply and demand intersect (Figure 5). At this point we have our equilibrium price (P e ) and equilibrium quantity (Q e ).

Scientific Events

Biology: COVID-19

The COVID-19 pandemic and the associated lockdowns hit the Leisure and Hospitality sector particularly hard (Figure 6). A recent study looked at hours worked by sector in the immediate aftermath of stay-at-home orders—March 2020. 2 As shown in Figure 6, the effects on hours worked are separated into supply factors (red bars) and demand factors (blue bars) and measured as the percent change in historical growth rates of hours worked in each sector. Supply factors are related to businesses partially or fully shutting down. Demand factors are related to reduced consumer spending, such as from customers not shopping, to avoid catching the virus, or simply cutting back on spending due to income loss. 3 For most sectors, hours worked dropped compared with historical trends due to both supply and demand factors.

When a factor other than price affects supply or demand, it is modeled by shifting the supply or demand curve, respectively, rather than moving along the curve. For increases in supply or demand, the curves are shifted to the right to higher quantities. For decreases, the curves are shifted to the left to lower quantities.

Although supply factors contributed to most of the almost 10 percent drop in the Leisure and Hospitality sector in March 2020 compared with historical growth, demand factors also contributed (see Figure 6). The change in this sector is demonstrated in Figure 7: Demand decreases (shifts to the left) and supply decreases more (also shifts to the left), resulting in a lower quantity of goods sold at the new equilibrium (Q 2 ). 4

Meteorology: Hurricane Sandy

In the fall of 2012, Hurricane Sandy hit New York City and surrounding regions, with millions of citizens and thousands of businesses losing power. In New Jersey, only 40 percent of gas stations tracked by AAA had power and were operational in the immediate aftermath of the hurricane. 5 As a result, consumers faced a severe shock to the supply of gasoline.

Applying the laws of supply and demand, one can predict how this event would change the quantity and price of gasoline at the pump: Assuming unchanged demand, 6 the supply curve would shift to the left (Figure 8). The equilibrium quantity would decrease from Q 1 to Q 2 , with the price increasing from P 1 to P 2 .

Did this occur? Not exactly. New Jersey Governor Chris Christie promised to punish gas stations that significantly increased prices above their pre-hurricane levels (P 1 ). 7 As a result, prices remained low because they were not allowed to reach equilibrium, so oil firms had no incentive to bring extra gasoline to the market at the lower price, long lines of vehicles formed, and many stations sold out due to limited supply. 

Chemistry: The Ethanol Fuel Boom

In the late 2000s, ethanol experienced a boom as an alternative fuel. Compared with gasoline, ethanol was believed to be cleaner burning (produce less carbon dioxide) and could be produced from renewable crops such as corn and sugar cane. 8 With subsidies provided by the U.S. government to produce fuel ethanol, production facilities sprouted up across the Midwest and supply increased in this growing industry. 9

With more and more ethanol being blended into gasoline for use in everyday car engines, many believed that yearly production would continue to grow for years to come. Then, consumers began noticing that their gas engines were being damaged by gasoline mixtures with large percentages of ethanol. 10 As it turns out, the chemical nature of ethanol makes it very attractive to water. When water gets into an engine's fuel, it increases the corrosion of metal and degrades the engine. As a result, regulators decided that gasoline for normal car engines could only contain up to 10 percent ethanol by volume. 11,12

Using supply and demand to analyze fuel ethanol markets is a little tricky due to the volume ethanol limit. In Figure 9, the desire of producers to increase the supply of ethanol is indicated by the rightward shift of the supply curve. Producers would expect ethanol buyers to continue increasing their demand as ethanol becomes more and more popular. However, all else being equal, once buyers are running their vehicles with gasoline with 10 percent ethanol, their desire to purchase more would dramatically decrease and the demand curve would become a nearly straight vertical line. 13 That is, the quantity demanded wouldn't increase much beyond this limit even if the price of ethanol were to decrease because people won't use gasoline with more than 10 percent ethanol. Thus, no matter how much producers wish to increase supply, buyers would not buy much more ethanol and increased production of ethanol would drive down prices.

Figure 10 U.S. Fuel Ethanol Consumption and Percent of Motor Gasoline Consumption, 1981-2019 (June 24, 2020)

Figure 10 confirms this analysis of supply and demand. Fuel ethanol consumption increased dramatically during the 2000s and then flattened out when it reached about 10 percent of motor gasoline consumption. 14

Markets provide a means by which individuals and businesses can trade goods and services. Though goods and services come in many shapes and sizes, they are all governed by the laws of supply and demand. Of course, unanticipated scientific events, such as pandemics and hurricanes, can alter the course of markets. Yet, the same laws that make markets function every day will exert their will—the laws of supply and demand.

https://www.sciencemag.org/news/2020/03/modelers-weigh-value-lives-and-lockdown-costs-put-price-covid-19 .

2 Brinca, Pedro; Duarte, Joao B.  and Faria-e-Castro, Miguel. "Is the COVID-19 Pandemic a Supply or a Demand Shock?" Federal Reserve Bank of St. Louis Economic Synopses , 2020, No. 31; https://research.stlouisfed.org/publications/economic-synopses/2020/05/20/is-the-covid-19-pandemic-a-supply-or-a-demand-shock .

3 Some sectors such as Wholesale Trade and Information were positively impacted by demand factors. In the case of the Information sector, the increase may have been caused by families increasing their demand for goods and services to work, communicate, and/or enjoy entertainment from home.

4 Figure 7 depicts price increasing, but price could decrease depending on the size of the supply and demand shifts and how responsive supply and demand are to price changes. 

5 Smith, Aaron. "Gas Shortage Continues in Areas Hit By Sandy." CNN Business, November 2, 2012; https://money.cnn.com/2012/11/02/news/economy/gas-shortage-sandy/index.html .

6 There could actually have been an increase in demand from individuals using gas powered electric generators during the power outage.

7 Futrelle, David. "Post-Sandy Price Gouging: Economically Sound, Ethically Dubious." Time , November 2, 2012; https://business.time.com/2012/11/02/post-sandy-price-gouging-economically-sound-ethically-dubious/ .

8 U.S. Energy Information Administration. "Biofuels Explained: Ethanol and the Environment." December 7, 2020, update; https://www.eia.gov/energyexplained/biofuels/ethanol-and-the-environment.php .

9 Byrge, Joshua A. and Kliesen, Kevin L. "Ethanol: Economic Gain or Drain?" Federal Reserve Bank of St. Louis Regional Economist , July 1, 2008; https://www.stlouisfed.org/publications/regional-economist/july-2008/ethanol-economic-gain-or-drain .

10 Johnson, M. Alex. "Mechanics See Ethanol Damaging Small Engines." NBC News, August 1, 2008; https://www.nbcnews.com/id/wbna25936782 .

11 Tyner, Wallace E.; Brechbil, Sarah l. and Perkis, David. "Cellulosic Ethanol: Feed­stocks, Conversion Technologies, Economics, and Policy Options." Congressional Research Service, October 22, 2010; http://nationalaglawcenter.org/wp-content/uploads/assets/crs/R41460.pdf .

12 Specialty vehicles with anti-corrosive engine parts were sold to accommodate fuel with higher concentrations of ethanol, including E85, a fuel mixture containing 85 percent ethanol. However, such vehicles and fuel types have yet to gain mass popularity.

13 The demand curve would likely not be fully vertical, as decreases in any fuel component's price, like ethanol's, would increase the quantity demanded of fuel. However, because ethanol makes up a small percentage of fuel, the demand curve is assumed to be nearly vertical.

14 U.S. Energy Information Administration (2020). See footnote 8.

© 2021, Federal Reserve Bank of St. Louis. The views expressed are those of the author(s) and do not necessarily reflect official positions of the Federal Reserve Bank of St. Louis or the Federal Reserve System.

Biology: The study of living organisms.

Chemistry: The branch of science that deals with the identification of the substances of which matter is composed.

Competitive markets: Markets in which there are generally many buyers and many sellers so that each has a negligible impact on market prices.

Demand: The quantity of a good or service that buyers are willing and able to buy at all possible prices during a certain time period.

Equilibrium price: The price at which quantity supplied and quantity demanded are equal. The point at which the supply and demand curves intersect.

Meteorology: The branch of science concerned with the processes and phenomena of the atmosphere, especially as a means of forecasting the weather.

Subsidies: Payments made by the government to support businesses or markets. No goods or services are provided in return for the payments.

Supply: The quantity of a good or service that producers are willing and able to sell at all possible prices during a certain time period.

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Home — Essay Samples — Economics — Supply and Demand — Understanding Supply and Demand Dynamics

Understanding Supply and Demand Dynamics

• Categories: Supply and Demand

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Words: 590 |

Published: Jan 30, 2024

Words: 590 | Page: 1 | 3 min read

Table of contents

Equilibrium, market dynamics and price changes, government interventions.

• Blanchard, Olivier and Jordi Gal"The Macroeconomic Effects of Oil Price Shocks: Why are the 2000s so Different from the 1970s?" in NBER Macroeconomics Annual, Volume 23. 2008.
• Mankiw, N.G. Principles of Economics, 8th ed., Cengage Learning, 2017.
• McConnell, Campbell and Stanley Brue. Economics: Principles, Problems, and Policies, 21st ed., McGraw-Hill Education, 2018.

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Supply and Demand, Essay Example

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The everyday occurrence of buying a new car has profound lessons for the discipline of economics.  On the demand side, there are numerous factors that affect purchasing a new car.  For example, demand for cars might be influenced by changes in prices of substitutes: If the price for public transportation (whether for train, bus, or subway) or motorcycles decreases dramatically might lead to less demand for cars (Mankiw, 2001). That is because consumers can pay less money and still receive similar benefits.  Another key demand side factor is interest rates charged on car loans or the availability of credit.  Since a majority of cars are bought on credit, a reduction in interest rates would lower the cost of financing (and ultimately the car) making cars more attractive to consumers. By the same token, if the standards for credit availability were lowered, this might also lead to greater demand for cars.  A contraction in credit or higher interest rates would likely lead to a contraction in demand as the price of the car increases. Third, changes in advertising or fashion can affect demand via an individual’s preferences vis-à-vis car purchase.  For example, many car makers are making more energy efficient cars that have less of an impact on the environment.  Consumers that normally wouldn’t buy cars, or may consider other substitutes, may purchase cars deemed “environmentally friendly.” Or perhaps advertising that stresses cars made in the United States has a palpable impact on consumers and increases individual demand by moving the demand curve.  Lastly, consumer sentiment plays a key role in shaping demand for automobiles: During the depths of the global recession, demand for cars plummeted as consumer sentiment over the future, including the ability to make car payments, deteriorated. As the economy and consumer sentiment gradually improved, so did the market for automobiles.

There are three main factors related to the supply of cars (Baumol& Blinder, 2004).  The first factor is the price of inputs used in building cars.   Cars are composed of many parts that vary in price over time. If the prices of inputs increase, the manufacturer has to decide whether to raise the price of the car which may lead to decreased supply.  On the other hand, if there is a significant decrease in the price of inputs, the car manufacturer might be willing to supply more cars.  The second main factor in deciding supply is the market structure of the car industry.  Traditionally, the car industry is extremely competitive, particularly after car manufacturers from India and China have now started to export cars.  With an increase in the number of manufacturers, and arguably competitiveness in the car industry, manufacturers may choose to reduce supply in order to avoid the situation of unsold cars. On the other hand, if  there is an overall decrease in the number of manufacturers, other manufacturers may choose to increase supply to make up for lost production in the market.  The last main factor is the producer’s expectation in the production of cars.  For example, a producer may look at factors such as consumer demand and price in order to decide how many cars to supply in the market.  Future expectations are very important as car manufacturers typically make production decisions 1-2 years in the future based on existing trends.

Demand and supply for cars may also have an impact on complementary goods such as GPS tracking systems.  GPS systems are a complementary good because car manufacturers or consumers who purchase cars also purchase GPS systems.  Another complementary good for cars is gasoline.  Gasoline must be purchased in order for a car to properly operate.  Higher prices for cars may have an adverse impact on the quantity of gas purchased, especially during times of an economic downturn or high gas prices.  An increase in the price of gas may also influence the quantity and type of car purchased.  Due to the wide range of cars available, price elasticity plays a significant role in the type of car purchased.  For example, due to the segmented nature of the car market, lower-priced cars likely have a higher price elasticity of demand.  For example, if Ford raises prices too high on a lower-end model, consumers will likely simply purchase another type of car.  At the upper end of the car market, however, price elasticity of demand is likely quite low.  That is, if Mercedes raised the price of a car $5,000, it is not clear that a consumer would necessarily purchase a BMW instead.  This is because consumers at higher price levels are less sensitive to changes in price.

Mankiw, G.  (2001). Principles of Economics.   New York: Southwestern Press.

Baumol, W. & Blinder, A. (2004).  Microeconomics Policy.  New York: Southwestern Press.

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Supply And Demand Analysis: Definition, Importance, And Framework

Supply and demand analysis is an essential tool for businesses of all sizes. It enables them to better understand the market forces that drive their industry, allowing them to make data-driven decisions that can help them maximise profits and minimise losses. But what exactly is supply and demand analysis? In this blog post, we’ll explore the definition of this important concept, its importance in today’s business landscape, and a framework to apply it effectively. Read on to learn more!

Check out our Advanced Executive Certificate in Supply Chain Strategy and Operations Management to learn detailed supply and demand analysis.

What is Supply and Demand Analysis?

Supply and demand analysis studies how prices change in response to the availability of goods and services. It is a key tool used by economists to understand the behaviour of businesses and consumers.

The basic idea behind supply and demand analysis is that prices are determined by the interaction between buyers and sellers in the marketplace. The amount of a good or service buyers can buy at a given price is known as demand. The number of goods or services sellers can supply at a given price is known as supply.

Changes in either supply or demand can lead to changes in prices. An increase in supply, all else being equal, will lead to lower prices. Demand increases, all else being equal, will lead to higher prices. A decrease in either demand or supply will have the opposite effect on prices.

Supply and demand analysis is often used to help explain economic phenomena such as inflation, unemployment, and economic growth. It can also be used to predict how changes in economic conditions might impact prices.

How Does Supply And Demand Analysis Work?

Supply and demand analysis is a powerful tool to help you understand how your business works. By analysing the factors that affect supply and demand, you can make informed decisions about pricing, production, and other essential aspects of your business.

To perform a supply and demand analysis, you need to understand the basic concepts of supply and demand. The supply and demand law is a fundamental economic principle that explains the interaction between buyers and sellers in the marketplace. The law of supply and demand is supported by the following four principles:

• There is a relationship between price and quantity.
• The connection decides the price of goods or services between supply and demand in the market.
• The market equilibrium occurs when the quantity demanded equals the quantity supplied.
• Changes in market conditions can cause shifts in the equilibrium price and quantity.

Supply is the number of goods or services available for sale at a given price. Demand refers to the number of goods or services consumers purchase at a given price. The law of supply and demand states that when there is more demand for a good or service than there is supply, the price of the good or service will increase. Conversely, the price will decrease when there is more supply than demand.

What is The Importance of Supply and Demand Analysis?

Supply and demand analysis is a basic economic tool used to understand the market’s relationship between buyers and sellers. It can be used to determine the prices of goods and services in a market and understand the forces influencing them.

Demand analysis looks at how much of a good or service people are willing to buy at different prices. This information can be used to understand consumer behaviour and make decisions about pricing and production.

Supply analysis looks at how much of a good or service producers can supply at different prices. This information can be used to understand business behaviour and make decisions about pricing and production.

The interaction between supply and demand decides the price of goods and services in a market. If there is more demand than supply, the price will increase. If there is more supply than demand, the price will decrease.

The importance of supply and demand analysis lies in its ability to help decision-makers understand market conditions and make informed decisions about pricing, production, and other factors that influence market performance.

 Benefits of Supply And Demand Analysis

• Improved Pricing : Supply and demand analysis can be used to set accurate prices for goods and services, helping businesses maximise profits while ensuring customers get a good deal.
• Better Forecasting : With the help of supply and demand analysis, businesses can predict future trends in their market with great accuracy, allowing companies to plan efficiently so as not to miss out on opportunities or fall behind competitors. 
• Maximizing Profits : By understanding the relationship between supply and demand, businesses are better equipped to adjust their operations accordingly to take full advantage of economic conditions – both short-term spikes and long-term changes – which may result in increased profits. 
• Increased Efficiency : Through analysing supply and demand dynamics, businesses can identify areas where they may need fewer resources (people/money) than currently allocated, leading them to become more efficient with their use of capital. This also allows firms to reduce costs without harming sales or customer satisfaction levels. 
• Reduced Risk : Companies that accurately forecast future trends are far less likely to suffer from sudden drops in sales due to unexpected changes in the marketplace, enabling them to make necessary adjustments before problems arise rather than after it’s too late! 
• Enhanced Customer Service Levels : When business owners understand how pricing affects consumers’ buying decisions, they can make more informed decisions about what items should be discounted at certain times throughout the year, allowing them to provide maximum value for money at all times whilst still delivering an excellent level of service overall!

How Can Supply and Demand Analysis Help the Economy?

Supply and demand analysis is a powerful tool for understanding the behaviour of markets, prices, and economies. It allows us to analyze how changes in the supply or demand of goods and services affect the economy. Supply and demand analysis can help governments set sensible policies by allowing them to understand better how different factors might affect market conditions in their countries. 

For example, they can use this knowledge to determine what taxes should be imposed on goods or services that are in high demand or scarce supply to encourage more efficient production while still providing consumers with an adequate amount of goods at reasonable prices. 

Furthermore, businesses also benefit from using supply and demand analysis when deciding on pricing strategies. 

They assess whether increasing prices will lead customers away from buying their products due to increased cost; if so, then adjusting price levels may be necessary for sales growth over time. In addition, companies examine elasticity – which measures how responsive people are to changes in price – before choosing marketing strategies that work best for their target audiences.

Overall, supply and demand analysis is essential because it helps both governments and businesses create effective economic policies that promote long-term stability through the balanced distribution of resources across society’s needs.

Read More: What is Supply Chain Finance? A Detailed Analysis

Supply And Demand Analysis Framework

The supply and demand analysis framework is a commonly used tool for analysing economic trends, market conditions, and consumer behaviour. This framework provides an empirical perspective on understanding the dynamics of markets and how buyers and sellers shape them. The basic premise of supply and demand analysis is the interaction between buyers and sellers determines the price and quantity in any given market. 

To understand these interactions, it is necessary to consider factors such as production costs, changes in consumer preferences or tastes, availability of substitutes or complementary goods/services, government policies related to pricing or trade barriers etc.

At its core, supply-demand analysis uses two curves: one representing the quantity demanded (demand curve) versus price; another representing the cost associated with producing each additional unit (supply curve). 

Together these curves allow us to identify equilibrium points where both sides have reached their respective goals – i.e., where producers have maximized profit by meeting consumer needs at acceptable prices. By studying shifts along either curve due to changes in underlying variables, we can better understand why certain markets behave in certain ways under different circumstances.

Finally, this approach also allows us to make predictions about future outcomes based on current data points – allowing firms/governments alike to develop plans for long-term growth or mitigation strategies based on expectations about the future states of different markets within their specific context.

How Does Supply And Demand Analysis Framework Work?

The Supply and Demand Analysis framework uses the principles of economics to explain how buyers and sellers interact in a market. The basic concept is that prices will either increase or decrease accordingly when there is an imbalance in demand for a product or service.

1) Supply : This refers to how much of a good or service suppliers are willing and able to produce at different prices. It depends on factors such as technology, cost of inputs, taxes, subsidies etc.

2) Demand : This refers to how many people want (or ‘demand’) a certain good or service at different prices. It depends on income levels, tastes/preferences, price expectations etc. 

3) Equilibrium Price & Quantity : These are the balance points where supply equals demand – i.e., quantity supplied by producers matches what consumers can acquire at that given price level. When this equilibrium is disturbed through an event such as increased production costs or higher consumer incomes, new equilibriums need to be established, leading to adjustments in both price & quantity demanded/supplied until the balance is restored.

4) Elasticity Of Supply And Demand : This measures the sensitivity of changes in demand and supply due to external factors like taxes & subsidies, which affects the pricing decisions of both buyers & sellers. Generally, if one increases while the other decreases, it causes a larger change than vice versa resulting in changes in equilibrium quantities & prices over some time.

Different Methods of Demand and Supply Analysis1

• Identify the Market : The first step in supply and demand analysis is to identify the market of interest. This could include tracking a particular product or industry, studying a specific geographic region where goods are traded, or monitoring an entire economic sector.
• Gather Data : Once the market has been identified, data needs to be gathered about both supply and demand for that good or service within that market. This data can come from various sources, including government reports, trade publications, company earnings reports and surveys of consumers’ buying habits.
• Analyze Supply : Supply analysis involves looking at production costs such as labour inputs and raw material prices as well as other factors such as transportation costs which affect how much a producer can make on any given item before losing money on it. By understanding these cost structure elements, one can better predict how producers will respond to price-level changes over time by either increasing or decreasing their production level accordingly.
• Evaluate Demand : On the demand side, numerous factors must be considered when conducting an analysis, including consumer preferences and income levels, along with political stability in countries where goods may be sold abroad, among others, if applicable.
• Compare Supply & Demand Factors : Using all of this collected information, it should then become possible for analysts to compare various supply-side characteristics with those found on the demand side. So predictions regarding future price movements can begin based on trends found throughout each respective factor associated with them.
• Monitor Results & Adjustments : Finally, once initial forecasts have been put together, it is important for analysts not just stop there but rather continue tracking results ongoing so any adjustments needed going forward can be quickly applied if necessary to keep projections updated accurately over time.

Latest Trends in Supply and Demand Analysis

• Big Data Analytics : With the help of big data analytics, companies can now understand supply and demand patterns in real time, enabling them to adjust their strategies accordingly quickly. This gives them a competitive advantage over those still relying on traditional methods.
• Predictive Modeling : Predictive modelling is used to identify future trends in supply and demand by analysing past behaviours and current market conditions. Companies use this technique to make more informed decisions about how much product they need to produce or purchase and when it’s most advantageous for them to do so. 
• Automated Demand Planning : Automated demand planning systems enable businesses to accurately forecast customer demands based on historical sales figures and external factors such as seasonality, weather, economic indicators etc. These systems also allow companies to simulate different scenarios to optimise production levels across multiple locations.
• Supply Chain Visibility : This trend focuses on ensuring that all participants throughout the supply chain have visibility into inventory levels at any given time, along with access to key performance metrics like delivery times or cost per unit shipped etc. 
• Agile Inventory Management : The concept behind agile inventory management is that instead of having large amounts of stock sitting idle waiting for orders, inventory is better managed through just-in-time techniques, which involve replenishing small stocks at regular intervals. This helps businesses reduce storage, transportation and waste costs while ensuring there’s always enough stock available to meet customers’ needs without overstocking.

What The Future Awaits For Supply and Demand Analysis?

The future of supply and demand analysis lies in leveraging advanced technologies to make decisions that lead to a more efficient and profitable market. As the world becomes increasingly connected, data collection will become easier and more accurate than ever before, thus providing better insights into how customers interact with products or services. This will enable companies to anticipate customer needs better, identify new markets for their offerings, and adjust pricing strategies accordingly.

Read More: What is Supply Chain Visibility? 10 key points

In addition, artificial intelligence (AI) algorithms such as Machine Learning (ML) can help in automating many aspects of supply chain management . AI systems can monitor global market trends by gathering data from multiple sources, allowing companies to respond quickly to changes. 

Furthermore, AI-based predictive analytics can provide real-time predictions about customer behaviour, allowing businesses to proactively create strategies that maximise profits while minimising losses due to unexpected shifts in market conditions. 

Lastly, blockchain technology is also set to revolutionise supply chain management and help streamline processes like tracking goods through the system. Creating an immutable record of transactions linked together through cryptography makes it much harder for fraudulent activities such as counterfeiting or double spending money from the same source possible within a given networked environment. 

The transparency provided by blockchain would also help reduce costs associated with manual record-keeping by cutting out intermediaries who needlessly add complexity and cost throughout the process without adding value.

Overall these advancements have created vast opportunities for businesses seeking competitive advantage over their competitors through improved efficiency of operations.

Overall, supply and demand analysis is a crucial tool for understanding the market dynamics of a given product. It helps to identify trends in pricing, production levels and other factors affecting the balance between buyers and sellers. By using this framework, businesses can identify ways to maximize profits while providing services or products that meet the needs of consumers. A thorough grasp of what drives supply and demand will allow businesses to make more informed decisions about their operations.

The Advanced Executive Certificate in Supply Chain Strategy and Operations Management can provide a comprehensive supply and demand analysis overview. You will learn about the different monitoring methods, analyzing, forecasting, and optimizing your supply chain to ensure maximum efficiency. Additionally, this program offers insight into how to manage risks associated with a fluctuating demand environment. With guidance from experts in the field, you will gain valuable knowledge essential for successful supply chain management.

More Information: 

What Is A Supply Chain Control Tower? Types & Uses

What is Supply Chain Consulting? Meaning and Frameworks

What Is Supply Chain Management And Why Is It Important?

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Demand And Supply Analysis Essays

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Free Supply and Demand Essay Sample

The ideas of supply and demand are very essential to finances, as they are the backbone of market economy. Demand is the competence or the enthusiasm of a consumer to buy manufactured goods at a particular price and given time. The total demanded relate to quantity of the good and services the customers are ready to buy.  Demand is recorded on a demand plan, and then plotted on a chart known as a demand curve which goes downwards. The mark stands for the link between cost and the quantity demanded. The quantity demanded is referred to the total of manufactured goods people are ready to buy at a definite price.

This link flanked by price and quantity demanded is called demand relationship. The law of demand states that while all other factors do not change, if a product is sold at a higher price, less people will ask for that commodity, in other terms, the higher the price of a commodity, the lower the amount demanded, and the inferior the price, the higher the quantity demanded. Consumers do not obtain large quantity of products when prices are high. This is because as the price of a product goes up, even the chance of buying the good is up. As a result buyers will naturally avoid buying a commodity that will make them to give up the spending of something else which is more vital.   In standard, each customer has a demand curve for any commodity that he decides to buy. The buyer’s demand curve is equal to the trivial utility curve. After adding up all the buyers’ curves, they end up making the market demand curve for that commodity. 

Supply indicates how much the sellers can offer to their buyers. The quantity supplied refers to the total amount of certain commodities producers are enthusiastic to supply to their consumers at a certain price. The connection between the amount of commodities supplied to the market and the price they are sold at is called supply association. Price is thus a reflection of demand and supply.  The law of supply indicates that the higher the price of a product, the higher the supply, and vice versa. Producers of commodities tend to supply more goods at a higher price because they’ll be selling at a higher profit or increased revenues. Supply involvement is a factor of time unlike the demand relationship.

Time is critical to supply because suppliers must adjust to the situation whenever there is a change in demand and price. For example, if there is increase in the demand and price of umbrellas in an unforeseen rainy season, suppliers may hold demand by using their making equipment more rigorously. However, if there is a climate change during the year, and the umbrellas will be needed, the change in demand and price will stay for long thus the suppliers will have to change their gear and making facilities to meet the lasting level of demand.

Supply and demand have relationship, and affects price in different manners. For example, if a certain item is costing very higher, the demand will decrease, and if the suppliers find an item has a high demand, they will increase its volume of production, and the selling price will go up. However, if demand and supply are equal, they are at equilibrium. Equilibrium refer to the price at which the amount demanded by the buyers and the amount that the firms are capable of supplying goods and services are equal.  In other words, the total commodities supplied is equal to the total commodities demanded therefore every person is satisfied with the recent economic situation. When supply and demand is equal, it is said to be at equilibrium; however, if the supply exceeds demand, demand exceeds supply, or the two are not balanced, there said to be points of disequilibrium.

Without a shift in demand or supply the market price will remain the same. A shift of demand or supply curve occurs when the amount of product’s demanded or supplied changes even though the price remains the same. Shift occurs due to certain factors rather than price. For example, the price of cooking oil is $4 and the amount of a certain type of cooking oil demanded increased from quantity 1 to quantity 2, there will be a shift in the demand for a certain type of cooking oil. Shifts in the demand curve means that the original demand connection has changed; this shows the quantity demanded has been affected by another factor and not the price. A shift in the demand connection would occur, if for instance, suddenly that type of cooking oil is the only type of cooking oil which is available in the market. There are other factors which might lead to a shift in demand curve these may include; if a substitute of a certain product increases its price or a complement of that commodity lowers its price. The consumers may as well want to change their tastes and preferences in favor of the product.

On the other hand, if the price for cooking oil was $4 and the amount supplied went down from Q1 to Q2, then there would be a shift in the supply of cooking oil. This will show that the previous supply has changed. This shows the amount supplied is affected by various factors other than the price. A shift in the supply curve would occur due to; for example, there might be a natural disaster which will cause the shortage of raw materials used to produce cooking oil thus there will be less supply. There other factors which may source a move in the supply arc, and these may include; development in the production technology will lead to high output and competence in the production process thus the supply will increase and lower the cost for businesses. Favorable climate will also lead to higher yields for agricultural commodities. 

Supply and demand is a basic feature in determining the character of the marketplace. This is because it is known to be the main determinant in location up the cost of commodities and services. The availability or the supply of commodities or services is a main indication in knowing the price at which those commodities or services can be obtained. For example, an industry giving some services but has not much competition in the area will be able to control the price than will an industry working in a highly spirited location. Accessibility establishes the pricing structures in the marketplace; however, demand must also be there.

For example, an industry may produce vast number of a product at a low cost, but if there is little or no demand at all for the manufactured goods in the marketplace, the manufacturing will have no alternative but to sell the manufactured goods at a very low price. On the other hand, if the marketplace shows friendly to the manufactured goods that is being sold, the industry can set up a higher cost for the product. This demonstrates that supply and demand are closely entangled economic perceptions. Definitely, this shows how supply and demand is regularly mentioned as among the majority basic in all of economics.

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Supply and demand is a basic feature in determining the character of the marketplace. This is the major determinant in setting up the cost of commodities and services. The law of demand equates extra things, as the price of a commodities rises, its quantity demanded falls.

Demand can be signified as the quantity of a product or service which is required by consumers, while the quantity demanded can be defined as the amount of a manufactured goods customers are willing to buy at a particular price; the two(demand and quantity demanded ) defines a demand relationship.  

Supply is what the market can offer. The quantity supplied is the quantity of goods producers are willing to supply at a particular price. The law of supply states that the higher the price of a commodity, the higher the supply, and vice versa.

Supply and demand have relationship, and affects price in different ways.  However, they are they are believed to be at equilibrium when both demand and supply are equal. However, if the supply exceeds demand, demand exceeds supply, or the two are not balanced, there said to be points of disequilibrium, resulting to shift.

A shift of demand or supply curve occurs when the amount of product’s demanded or supplied changes even though the price remains the same. Shift occurs due to certain factors rather than price. In demand, if a substitute of a certain commodity increases its price or a complement of that commodity lowers its price. The consumers may also want to alter their tastes and preferences in favor of the product. In supply, there other factors which may cause a shift in the supply curve, and these may include; improvement in the production technology will lead to high output thus the supply will increase. Favorable climate will also lead to higher harvest and the supply will be high.

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Managing the Seasonal Variability of Electricity Demand and Supply

About this report

Electrification of end-uses and the growth of solar and wind is changing how electricity systems operate on all time scales. This report analyses how seasonal variations in both demand and supply affect electricity system operations to 2050 – in Europe, India, Indonesia and Korea – and what sources will be used to manage them. Seasonal variations are put in context with the annual electricity mix and short-term (hourly) variability. Each of the analysed regions has a unique electricity mix today, available resources, geographies, and patterns of electricity demand. Each has charted a different course for their clean energy transitions and is located in different climatic zones. This study also recognises that weather conditions are uncertain and vary from year-to-year, exploring their impact on system operations and power system costs. The study finds that, in each system, both short-term and seasonal flexibility needs rise considerably to 2050. Flexibility, currently provided by thermal power plants and hydro, will increasingly come from new sources – demand response and batteries on shorter timescales and hydrogen across weeks to seasons – with low emissions thermal power plants and hydro remaining important providers of seasonal balancing. As the systems become more capital-intensive, consumers are increasingly insulated from the impact of weather variations on power plant operations and the volatility of fossil fuel prices.

This work expands on the report Managing Seasonal and Interannual Variability , published in April 2023 which assesses the impact of weather-related variability on system operations across seasons and between years in different climatic zones.

Cite report

IEA (2024), Managing the Seasonal Variability of Electricity Demand and Supply , IEA, Paris https://www.iea.org/reports/managing-the-seasonal-variability-of-electricity-demand-and-supply, Licence: CC BY 4.0

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McDonald’s Supply Chain Issues – a Case Study on Supply and Demand Analysis

Is there a more iconic symbol of American culture than McDonald’s?

The fast-food industry has shaped the modern lifestyle, not only in the USA. McDonald’s Corporation is present in over 100 countries and has more than 1.7 million employees. There are a lot of helpful business lessons a student can learn from doing the McDonald’s case study .

• 🍔 McDonald’s Supply Chain
• 🥬 Case Study Ideas
• 🚚 Supply and Demand Analysis
• 📈 Supply Analysis
• 💊 Supply Chain Issues
• 📚 Demand Analysis
• 👍 McDonald’s Case Study – 30 Best Examples

🔗 References

🍔5 facts about mcdonald’s supply chain.

• A new McDonald’s opens nearly every 14.5 hours . McDonald’s supply chain management made the company the number one fast-food chain globally.
• McDonald’s has one of the best supply chains in the world . In 2016, it was ranked the second-best in the Top Supply Chains by Gartner.
• McDonald’s uses The Three-Legged Stool approach for franchising . The company’s founder Ray Kroc designed this method: the first leg is McDonald’s employees, the second is the franchise owners, and the third is the suppliers.
• Products are transported to McDonald’s restaurants by special cars . They are equipped with innovative temperature-control mechanisms. Check out our free essay samples to learn more about McDonald’s supply chain.

🥬 McDonald’s Case Study – Fresh Ideas

Various factors contribute to McDonald’s successful financial performance. Here’re some ideas to consider when doing the McDonald’s case study.

• Corporate culture.
• Vertical integration of the supply chain.
• International menu variations.
• McDonald’s inventory management system.
• Storage and distribution systems.
• Marketing principles.
• Recruitment practices at McDonald’s.
• Suppliers’ code.
• McDonald’s largest suppliers.
• The SWOT analysis.

🚚 McDonald’s Supply and Demand Analysis

• McDonald’s supply chain overview McDonald’s outsources 100% of its supply needs. The company grows its products through contracted producers and transports its own goods. McDonald’s supply chain promotes growth not only for the restaurants but also for the suppliers.
• McDonald’s consumers’ demands Most customers expect quick and simple ordering from McDonald’s restaurants. Having failed the experiment with pizza in the 1990s , McDonald’s has stuck to hamburgers, cheeseburgers, and French fries on the menu.
• McDonald’s model is a win-win relationship between the company, the suppliers, and the customers.
• Instead of looking for suppliers that offer the best price, McDonald’s maintains long-term relationships with existing ones.
• McDonald’s does not micromanage business partners in its business model.

📈 McDonald’s Supply Chain Case Study

• McDonald’s supply chain: sustainability McDonald’s aims to use natural resources to contribute to protecting the environment. One of the significant steps in this process is utilizing nature-positive supply chains. While trying to reduce their impact on nature, the company also develops a more sustainable global economy.
• McDonald’s supply chain: economics McDonald’s works with its suppliers to research and share the best practices to increase productivity and financial performance. The company aims to reduce hunger and provide decent jobs to its suppliers worldwide.
• McDonald’s supply chain: food safety Food safety is a serious responsibility of McDonald’s. To help with this, suppliers have special programs allowing them to track food in the supply chain. Moreover, McDonald’s approaches a Food Safety Advisory Council to educate its employees about food safety.

💊 McDonald’s Supply Chain Issues

• McDonald’s switching from frozen to fresh burgers Since 2012, McDonald’s has lost 500 million restaurant visits as customers have chosen more fast-casual alternatives that provide fresh burgers. For that reason, in 2018, the company announced that it was switching to fresh patties instead of frozen in its burgers at 300 U.S. restaurants.
• McDonald’s supply chain issues due to Covid-19 In 2021, McDonald’s lacked some bottled drinks across its 1,250 restaurants in Great Britain. This happened because of a shortage of lorry drivers due to Covid-19 restrictions and self-isolation rules.
• McDonald’s supply chain disruptions Supply chain disruptions can significantly impact McDonald’s financial performance and reputation. To reduce the negative impact, McDonald’s has multiple supply backup sources. McDonald’s has tested and trustworthy suppliers ready to help if a disruption occurs.

📚 McDonald’s Demand Analysis

• Menu and burgers at McDonald’s McDonald’s used to make the tastiest hamburgers in America. However, this award today goes to other fast-food restaurants, such as Shake Shack . To win back customers, McDonald’s needs to focus on improving the quality of its core products.
• Lower prices at McDonald’s McDonald’s customers are unwilling to spend more than $5 on a hamburger. McDonald’s has a simplified menu and self-serve ordering system to lower its prices. It is important to notice that organic food and high quality are not the first things consumers want from McDonald’s.
• Customer service at McDonald’s McDonald’s employees’ essential quality is having a passion for people. McDonald’s adopts a multi-channel communication system to ensure that all its messages from the customers are delivered to staff. McDonald’s collects feedback and complaints on its website to identify factors affecting the demand .

👍 McDonald’s Case Study – 27 Best Examples

Mcdonald’s supply chain issues.

• Food industry: McDonald’s company . This essay investigates McDonald’s price elasticity of demand for its goods and services and its supply chain.
• Mcdonald’s vs. Wal-Mart’s Strategic Choices . This paper compares the two successful American companies and their supply chains.
• McDonald’s organization: operation management . This report focuses on the key concepts of McDonald’s operations management, including supply chain management.
• Mcdonald’s entering Estonia case analysis . This study investigates how McDonald’s can enter the Estonian market successfully and build a trustworthy relationship with local suppliers.
• An external and internal analysis of McDonald’s Corporation . This paper conducts an external and internal analysis of McDonald’s Corporation and evaluates its supply chain management.
• Quality management in McDonald’s restaurant . This essay analyses the measures McDonald’s uses to ensure that all supply chain operations occur safely.
• Business strategy analysis of Mcdonald’s . This paper explores how McDonald’s supply chain supports its operations worldwide.
• McDonald’s and Wendy’s International Inc . This report focuses on the management, suppliers, and customers of the two competing companies— McDonald’s and Wendy’s.
• McDonald’s, Starbucks, and American International Group . This paper compares three selected public companies, focusing on their financial performances and supply chains.

McDonald’s Marketing Strategies & Advertisement Campaign

• McDonald’s and Coca-Cola ads in the Russian market . This essay explores McDonald’s and Coca-Cola’s ads’ impact on the Russian audience.
• Marketing analysis: McDonald’s company. This study explores McDonald’s marketing approach to maintaining the balance between price and quality.
• McDonald’s marketing strategies in the UAE. The report analyzes the marketing strategies of McDonald’s, as well as market descriptions and segments of the company in the UAE.
• McDonald’s company’s marketing strategies . This report presents an analysis of the internal and external environments of McDonald’s and reviews its marketing mix.
• McDonald’s company marketing practices and strategies . This paper looks at the most suitable market entry strategies McDonald’s can use to continue expanding to the international market.
• Business ethics and Social Corporate Responsibility for McDonald’s . This essay investigates how McDonald’s CRS policy contributes to the company’s marketing success.

McDonald’s Human Resource Management & Employment

• McDonald’s business principles: employment violations . This essay concerns the problem of the company’s ethics strategy and how McDonald’s tries to fix it.
• McDonald’s strategic management of human resources & innovation . This research contains an overview of McDonald’s human resource management and suggests how it can be improved.
• McDonald’s human resources management practice . This paper explores McDonald’s human resource management and its strengths and weaknesses.
• McDonald’s company: human resource functions. This research focuses on McDonald’s human resource issues.
• McDonald’s company H.R. management practices . This essay aims to demonstrate how McDonald’s efficient H.R. management practices benefit the company’s financial performance.
• McDonald’s Corporation’s talent management program . This paper provides details on McDonald’s successful talent management program.

Mcdonald’s Financial Performance & Market Influence

• McDonald’s company case analysis . This paper aims to assess the effects of McDonald’s operations strategy and its different perspectives on the company’s financial success.
• McDonald’s Corporation’s five forces analysis. This essay focuses on the five internal and external factors influencing McDonald’s performance.
• Microsoft Corporation and McDonald’s corporation: financial performance . This paper compares Microsoft Corporation and McDonald’s Corporation’s financial performance.
• McDonald’s accounting information system . This paper examines the accounting information systems at McDonald’s.
• McDonald’s company’s strategic management. This essay investigates how McDonald’s strategic decisions influence the company’s financial performance.
• Comparative financial statements of McDonald’s. This writing analyzes the financial aspects of McDonald’s over the recent years.
• Best Items on McDonald’s All Day Breakfast Menu – Business Insider
• The Supply Chain: From Raw Materials to Order Fulfillment – Investopedia
• 2022: Supply chains will face many challenges this year | World Economic Forum
• McDonald’s Is Using AI and Data to Optimize Its Supply Chain
• Demand and Supply Planning for a Large Fast Food Chain – AnyLogic Simulation Software

Descriptive Essay Topics: Examples, Outline, & More

371 fun argumentative essay topics for 2024.

Natural Gas News: Demand Surge, Supply Cuts Tighten Supply

Key points:.

• U.S. natural gas futures stable, potential growth ahead.
• Increased LNG exports, reduced drilling boost prices.
• Pipeline maintenance may decrease West Texas gas supply.

In this article:

Natural Gas

U.S. Natural Gas Market Trends

U.S. natural gas futures remained nearly unchanged on Tuesday, with the market benefiting from a three-day rally. The outlook appears favorable for growth as short-term and intermediate trend lines show upward movement. This optimistic market condition might attract new investments from commodity trading advisors and major technical traders.

At 14:00 GMT, Natural Gas Futures are trading $2.198, up $0.003 or +0.14%.

Rising Demand and Price Supports

The recent surge in U.S. natural gas prices, marked by a 3% increase to a four-week high on Monday, is largely attributed to anticipated higher demand over the next two weeks. This uptick in demand follows increased feedgas supply to liquefied natural gas (LNG) export plants, particularly with the operational resumption of Freeport LNG in Texas. Additionally, an ongoing reduction in natural gas output has bolstered prices. Key producers like EQT and Chesapeake Energy have scaled back drilling activities due to low prices earlier in the year, contributing to a tighter market.

Production Cuts and Pipeline Maintenance

U.S. gas production has seen a significant decline of about 9% so far in 2024, which tightens the domestic market. Upcoming mid-May maintenance on Kinder Morgan’s critical pipelines, including the Permian Highway and Gulf Coast Express, is expected to exacerbate supply constraints. These maintenances could trap more gas in the Permian Shale, potentially driving prices at the Waha Hub in West Texas back into negative figures.

Weather and Export Influences

Weather patterns are expected to significantly influence natural gas demand in the coming weeks. Meteorologists forecast a shift from warmer to near-normal conditions, which could affect heating and cooling needs. Furthermore, gas flows to major U.S. LNG export facilities have increased, particularly with the gradual return of Freeport LNG, enhancing total exports. This trend is critical as the U.S. continues to lead as the world’s largest LNG supplier, fueled by heightened global demand due to geopolitical tensions.

Short-Term Forecasts

Considering the current market conditions, including recovering demand, decreased production, and strategic pipeline outages, the short-term outlook for U.S. natural gas prices leans bullish. Traders should closely watch weather forecasts and international demand influences, which could further sway U.S. gas prices.

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About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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