Basic Laws of Supply and Demand

Supply and Demand:

P – price
Q – quantity of good
S – supply
D – demand

The four basic laws of supply and demand are:

  • If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity.
  • If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.
  • If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
  • If supply decreases and demand remains unchanged, then it leads to higher equilibrium price and lower quantity.



15 Things To Know For Your First Startup

A great post from Neil Patel about things to know when starting.

  1. Swing for the fence (Aim High)
  2. Create a simple product (SMPL)
  3. Solve a problem
  4. Know your market’s price tolerance
  5. Advertising is a must
  6. Payments should be easy
  7. Be patient
  8. Premium prices have advantages
    • You appear like an authority
    • You will get fewer complaints
    • You deliver excellent customer service when focusing on a small number of clients
    • You’re reputation grows
  9. Free work can lead to lucrative work (Don’t lower your price)
  10. Never Stop Closing
  11. Eliminate everything else but the essentials (FOCUS)
  12. Always lock into your passion (It’s going to be a long, bumpy road, you might as well enjoy the trip
  13. Hire carefully (Hire Slowly, Fire Fast)
    • Test the waters yourself
    • Develop a process
    • Forget about pay
    • Consider more than talent
  14. Smart people learn from other people’s mistakes
    • Get a mentor
    • Read about business failures
  15. Cash is king
    • Use volunteers and interns
    • Work like a slave
    • Resist a fat salary
    • Don’t buy expensive office furniture
    • Keep the office space at a minimum



Make Your Money’s Worth From Deal Sites

I was just at the Superior Rustproofing for the first time. The garage is 20min drive from my place and it is located in a rather secluded crescent, definitely not a kind of place you would pass by. The way I learned about them was through and a coupon I bought for oil spray rustproofing. If it was’t for the coupon, there was no way on earth I would have known these guys and trusted them with the job.

After trying a couple of times to book an appointment for a month later, I finally go there. The manager, who took my car in, immediately points out to the different levels of service and I could use the coupon towards more expensive services. Kudos that he’s trying to get more sales and get me to spend more at his shop. Not only he found a new customer that is going to talk about him but also he would get the customer to spend more and would charge extra on taxes that would easily make up for the money he spent on the coupon. The question remains if the customer a returning customer?!