Economic case study

The supply and demand relationships affirm this explanation given that the two dimensions have the same effect on the business world and the two have a direct impact on each other. The statement given in this case is that demand creates its own supply and on the other hand, supply creates its own demand. The explanation given in the article is that as the demands sour up, the supply of the same product goes down. The demand, in this case, is used as a determinant for supply. When the demand is quite high, the supply will be low and it means it will create the development of a new supply margin. The classical economic theory is chiefly applicable in this case.