To me there is never an equilibrium of supply and demand. It seems as if there is always too much of something or not enough. In the recent years the supply of vehicles in the auto industry was at a surplus where as the demand for them was very low. In the new year we have seen a rise in sales for some of the major car companies. Every year there is an auto show which showcases many of the hot new cars out. I decided to watch it for sometime. I noticed some of the things these companies were doing to promote their automobiles. One is powered by electricity, another is a hybrid and this one here has some ridiculous top speed and can also park itself. Auto companies are trying to make their products attractive both to the consumers eye and wallet to promote sales which in turn encourages an increase in both demand and supply.
A recent article, Swedish Truck Makers Suffer Production Woes shows how supply and demand can affect a company. Supply and demand affect production. When production is down due to a decrease in demand auto companies may let go some of their workers. When the demand goes up again in the new year these companies have to hire people again and have them go through training to be able to work in production. The suppliers are also heavily affected; they have to crank out as much supplies as the industry demands. It is only ideal that the price of a product increase as the demand increases. In order for the suppliers to get their product out in a timely manner especially if they are out of stock, it will take more money and time. This is a huge part of how everyone who puts in work to the manufacturing process of these automobiles makes profit. Another thing mentioned in this article was how an easy mistake or miscommunication can mess up the whole "production chain." In order for things to be successful everyone has to be on the same page. Supply and demand are tough things to work with in the auto industry.
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