Chapter 2: Demand and Supply

       Demand is an economic principle which consumer’s desire, willingness, and have the ability to pay for the goods and services they want to purchase at a certain price rate. The quantity demanded by people shows that the people can afford what they desired to buy. Moreover, the relationship between the price and quantity of demand is called demand relationship.

         However, as for the supply theory, supply deals with the firm’s behaviour as the objectives of firm is to obtain profitability. Supply is also referred as the quantity of goods and services that is willingly to be produced from the firm and offered for sale at a certain period of time and certain level of price.

          According to an article about the demand and supply of an oil industry company shows that the increase of price for the oil is bad for everyone. Definitely, it is not good for the countries that is developing and consuming oil as it will cause chaotic problems to the country. The Total Chief  Executive Christophe de Margerie told reporters that he expected no decision on Iran’s South Pars field in the short-term but he is interested in ‘the long-term’.

 

 

 

 

 

Article’s link

        http://articles.economictimes.indiatimes.com/2008-05-12/news/27737145_1_iran-s-south-pars-gas-field-gas-project