Supply and Demand Mechanism

Economics plays a vital role in daily life and at the macro level as well, the basic concept of economics which we see in our daily life is the “Supply and demand” concept which applies everywhere and in every field from inventory management to the recruitment of people of the society.

In most developing countries what is observed there’s so much demand for basic needs which are jobs, medicines, food and accommodation where on contrary there’s lack of supply due to financial challenges, waiting time in supply and the bottleneck of candidates already available in the market to take jobs.

It is to be evaluated at the macro level how much demand is and against it how much it is supplied to meet at minimum needs and demands. For example, let’s take the example of the Covid 19 vaccination, it’s my personal experience that hospitals are short of vaccinations but there are people in the queue waiting to have their turn, so here there’s has to be a proper mechanism to be placed for example EOQ model which calculates how many people in a daycare in the queue, waiting for their turn to get covid vaccination because people come from different walks of life maybe anyone is coming from home, from work or in the middle of meeting so it would reduce waiting time or maybe frustrations at people’s end.

Secondly, the biggest challenge we are observing is of getting people on jobs since, after Covid most of the private sector has done massive layoffs due to any reason, maybe was it legitimate or abusing the situation, people and many families faced severe consequences and pushed them below the poverty line as well. The challenge is if at the macro level and at the organizational level there is any proper strategy to keep people rather than throwing them by using covid as an excuse this situation wouldn’t have happened. Further, we need to see if the market has the capacity to fulfill the needs and demands of candidates before bringing them into the market? Because of supply and demand mechanism is not followed, there would definitely be frustration at both ends, employers will exploit candidates and employees are pushed towards choosing sub-standard life which is not right. 

If due to employer’s lack of awareness about demand and supply mechanisms, they are bringing people constantly and after some time they do layoffs then again, they are throwing not just that particular “employee” to society in fact there’s a family attached to that person which is equally suffering due to this unethical dilemma. Bringing new people or changing the entire team is not a solution, evaluate your current workforce and already candidates available in the market, how can they be more useful and effective, utilize them. 

Understanding basic economics concepts are very important in order to avoid serious situations at both micro and macro level and maintain balance in society. Money or facilities should not be with one class or group of society; it should be equally distributed. Capitalism is not an ideal model of promoting economic progress, it hurts the public at large.