Supply and demand is the fundamental concept of a market economy. It allows the level of supply of a given product, or how much is manufactured and offered for sale, and the demand for it, to determine the price of a product. If the supply for a given product exceeds the demand for it, then in order to sell the product, the manufacturers are most likely going to reduce the price, or put the product on sale to stimulate demand. In contrast, if the demand exceeds the supply, manufacturers can raise their prices.
- John Brock of Coca-Cola: Staying Strong in the Competitive Beverage IndustryJohn Brock has come a long way since his first jobs working in his uncle’s dime store and at a paper mill in Moss Point, Mississippi. Today he is chairman and CEO of Coca-Cola Enterprises. He discusses Coke’s philosophy on selling soda in schools, helping the environment and recruiting teens to become devoted drinkers of the company’s sparkling soft drinks.
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