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While this is true, I was also trying to suggest that for equal demand, if something has half the supply as the other, that doesn't automatically mean the value will be double. Could be more, could be less.
Agreed and I would add that the demand side understanding is much more fluid than the supply side of the equation.
The supply side can often be quantified based upon number printed and survival rate.
But the demand side can be very fickle with all kinds of factors influencing it. Here in the southeast US we recently had a gasoline pipeline accident; within 12 hours gas stations start running out of gas. This immediately impacted demand only because everyone ran out and filled up their vehicles based strictly upon the
expectation of a shortage. Of course gas stations quickly took advantage of the situation and raised prices.
While we may be able to identify the things that influence demand it can be quite complex and challenging to quantified that demand.
Don
Posted 11/02/2016 4:11 pm
