For customer:

  1. The demand and supply provide the customers with an overview of price changes in their desired products. Most people would tend to purchase the products at relatively lower prices.
  2. A contradiction always happens when the customers demand more on a product; both the quantity and price of the products are more likely to increase simultaneously.
  3. Conversely, both the quantity and price of the products will be on a downward slope when the customers have less demand for the products for varied reasons.

For business owner:

  1. The demand and supply knowledge could help business owners to maintain an equilibrium price for their products to maintain a steady supply of goods and services and drive profitability (Mailchimp, n.d.).
  2. When they understand the customers’ demand, they can forecast the demand for their products, which helps them maintain an adequate inventory while minimizing lost sales.
  3. By understanding the supplier’s conditions, such as the supply power, including supply prices and quantities, the business owners could “shop around” and find the optimal supplier, bringing the company immense profits. 

For supplier:

  1. The demand and supply could provide the supplier with a valuable model to determine the price and quantities to avoid troubles such as unusable or overstocking, which wastes a lot of costs.
  2. According to the business owners’ and customers’ demands, the suppliers could set a price that all three parties could accept while still being profitable.
  3. Unlike the customers, when the prices of the products are relatively high in the market, the suppliers may desire to produce more because they could obtain higher profits. However, it also depends on the customers’ demand because if the demand is relatively low, the suppliers may be responsible for the risks of loss.