Knob Creek Supply Analysis

Supply is the amount of goods a producer is able and willing to provide to the consumers. When the supply of products is high, goods tend to be cheaper, which makes it possible for me to acquire goods in large amounts. On the other hand, when the supply is low, they become a bit expensive and this reduces my buying capacity. It also forces me to forgo some products especially because I am not able to afford them all. Changes in the supply of some goods leads to prices fluctuation and this alters my budget, especially if the prices go higher than the usual. Related to this topic is scarcity. The opening of knob creek is a good example of scarcity. Due to many loyal customers out there, the demand for Knob Creek Bourbon finally outstrips the supply” (Fromm, & Garton, 2013). Scarcity in supply of goods helps me to budget for my future through anticipating to buy the scarce products when available.

Taxes

The government collects taxes from citizens such as value added tax on goods. High taxes reduce the purchasing power of the money in my hands, since the prices of goods increase with the increase in taxes imposed by the government. It makes me strain in meeting all of my needs since I have to forego some for others. On the other hand,

Businesses choose to produce certain types of products to satisfy the user needs in the market and fully utilize resources available. When the market is in good conditions, production and supply is high and thus I am able to acquire goods when I need them at relatively fair prices since they are available. If I am given discounts and allowed to bargain for goods in the market, I am able to buy more goods. The market sometimes fails and causes me to struggle in acquiring goods like the grain pile up in North Dakota that created a problem to the market (Rittenberg, Libby, Flatworld Knowledge, & Tregarthen,