Every business owner should have knowledge of economics and the law of demand and supply, no matter how rudimentary it may be.In the study of economics, the law of demand and supply states that when demand of a product or commodity increases and the supply stays the same, then prices are expected to go up.In the same manner, when the demand for the product or commodity decreases, its price in the market is normally presumed to go down.By studying market trends, evaluation of the demand of the target market, and even the prices of related products, an entrepreneur will be able to increase demand and maximize profits.

First of all as a businessman, you need to analyze the current demand of your product. The demand and supply relation can be determined by doing an analysis of the trend in the market.Once you have outlined the demand patterns of your customers, you can then set about controlling the supply of your product.Taking into consideration the shelf life and expiration date of your product from the date of manufacture, you need to be able to manage the number of your product supply to ensure that this is just enough for the available demand. When your product supply exceeds too much the market’s demand and the products end up in spoilage, then this means decreased profits.

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A plan for economic recovery of EU member states has been proposed by the European Commission. European Commission is urging member states to sign up for this plan that aims to be coordinated across the European bloc by combining tax cuts and targeted investment.

The details about the plan have been unveiled on Wednesday and it may be of 130bn euros that is nearly one percent of EU states’ GDP.

EU has been asked to ease fiscal rules that may help the nations to spend more to strengthen their economies.

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Almost a 3 percent drop was noted in Dow Jones and Nasdaq indexes while London’s FTSE 100 index sank about 2.5% .Similarly, French and German markets each lost around 3%.

The results came forward when US data suggested mounting unemployment claims and sluggish shop sales.

The European Central Bank has shown 1.5% growth forecast in 2009, but now it cuts to 1.2%.

In the US, the jitters prompted after an ADP Employer Service report that showed 33,000 jobs cut during August. Weak sales during closely-watched back-to-school period also became the cause of anxiety in economic activities. …read the rest of this entry»