Running head: KOHL’S SUPPLY & DEMAND ANALYSIS 1
Supply and demand is an important foundation of economics and an essential part within
any business. There are many factors that can shift supply and demand. One must analyze all
these different facets in order to ascertain whether a company’s supply and demand are in
equilibrium. We must first understand the basic laws of each concept in order to further evaluate
the impact it has within business management and potential growth of an entity.
We first start off with the concept of supply, which essentially states that “as price rises,
the quantity supplied rises; as prices falls, the quantity supplied falls.” (Brue, 2014) The law of
demand states that the quantity of a product is less demanded when the prices are higher. It is
not difficult to understand why people would want to buy more when prices are lower, because
no one wants to spend more rather than less money. Equilibrium is reached when demand equals
supply. The supply and demand curve can shift depending on many indicators but the focus here
