RThoads
Subscriber
Let me explain the economic forces of supply and demand.
If you had a gas station and already full tankers stocked with gasoline, then the government suddenly put new regulations of oil refiners and the prices of supply will rise, the price you charge for the gasoline you currently have will immediately increase.
Even without such drastic measures as government restriction on supply, just simple changes in the price of oil will affect the price of currently stocked gas at the stations even though that gasoline is already in stock.
It is all about the overall supply chain, and forces of supply and demand.
Another example, say you have a pound of marijuana on hand and sell in a state where marijuana is currently legal to possess. Maybe up break it up and usually sell 1/8 of ounce portions for $30 each (lets assume that is a going price in the area).
Then, suddenly the government bans it everywhere and drastically restricts supply meaning you know it will difficult, or maybe even impossible, to get more stock in the future. Suddenly, the prices will shoot up because it will become much more difficult to obtain -- existing stocks become more valuable because the demand is the same (or maybe even increasing) while the supply is suddenly decreased.
The interaction of supply and demand will dictate a price in the free market. If you do not like a price and the product is not worth it to you, then your demand will decrease. Likewise, a restriction is supply will create scarcity which makes existing stocks more valuable.
The market will work out where these forces (supply and demand) find a balance and converge to give the going rate.
The restriction in raw materials supply hurts us all, but is hurts the sources more because this is how sources and their employees have an income.
Sure as consumer, you may be disappointed about higher prices, but your life goes on without a major disruption. In contrast, if operating costs and associated prices rise too high for business to remain viable, or supply simply becomes unavailable, the business stops and people loss their means of income.
You are not forced or required to make a purchase -- you are free to make your own choices. But if the business suffers from this situation, many of the employees will be forced to endure the negative impact on our livelihoods.
Just like with any other type of business, this business is some people full-time job and sole source of income, some people's households depend upon the business's success to have an income
In other words, while you may not like the recent bad news because you may have to pay more for AAS/PEDs, the sources and their employees may be devastated by the bad news because, just like if your employer downsized or closed, some of us are worried about how we will pay our rent/mortgages and put food on the table.
I just hope some new chemical companies start up asap to fulfill the demand so everyone involved can avoid suffering from a lack of supply.
If you had a gas station and already full tankers stocked with gasoline, then the government suddenly put new regulations of oil refiners and the prices of supply will rise, the price you charge for the gasoline you currently have will immediately increase.
Even without such drastic measures as government restriction on supply, just simple changes in the price of oil will affect the price of currently stocked gas at the stations even though that gasoline is already in stock.
It is all about the overall supply chain, and forces of supply and demand.
Another example, say you have a pound of marijuana on hand and sell in a state where marijuana is currently legal to possess. Maybe up break it up and usually sell 1/8 of ounce portions for $30 each (lets assume that is a going price in the area).
Then, suddenly the government bans it everywhere and drastically restricts supply meaning you know it will difficult, or maybe even impossible, to get more stock in the future. Suddenly, the prices will shoot up because it will become much more difficult to obtain -- existing stocks become more valuable because the demand is the same (or maybe even increasing) while the supply is suddenly decreased.
The interaction of supply and demand will dictate a price in the free market. If you do not like a price and the product is not worth it to you, then your demand will decrease. Likewise, a restriction is supply will create scarcity which makes existing stocks more valuable.
The market will work out where these forces (supply and demand) find a balance and converge to give the going rate.
The restriction in raw materials supply hurts us all, but is hurts the sources more because this is how sources and their employees have an income.
Sure as consumer, you may be disappointed about higher prices, but your life goes on without a major disruption. In contrast, if operating costs and associated prices rise too high for business to remain viable, or supply simply becomes unavailable, the business stops and people loss their means of income.
You are not forced or required to make a purchase -- you are free to make your own choices. But if the business suffers from this situation, many of the employees will be forced to endure the negative impact on our livelihoods.
Just like with any other type of business, this business is some people full-time job and sole source of income, some people's households depend upon the business's success to have an income
In other words, while you may not like the recent bad news because you may have to pay more for AAS/PEDs, the sources and their employees may be devastated by the bad news because, just like if your employer downsized or closed, some of us are worried about how we will pay our rent/mortgages and put food on the table.
I just hope some new chemical companies start up asap to fulfill the demand so everyone involved can avoid suffering from a lack of supply.
