December is just about over, and the holiday shopping rush has finally started making its way down. With the holidays, come the demand for certain things that are only available during the season.
Economics this quarter pretty much revolved around the law of supply and demand. What is the law of supply and demand? It is one of the most fundamental concepts in economics. Demand refers to how much (quantity) of a product or service people are willing to pay for. Supply refers to how much the market can offer.
So many products have demand that just goes up during the Christmas holidays. Food-wise: we’ve got quezo de bola, bibingka, and puto bumbong. Demand for toys and other unique items go up too. Christmas wrappers and tags are in high-demand as well. There is also, of course, a high demand for Christmas trees and Christmas decor.
With these demands, supply should be abundant to provide for everyone who would be getting these products. When talking about supply, we also come across things like surplus and shortages. A surplus is the amount of a product that is offered for sale in excess of the quantity that customers are willing to buy. A shortage is the amount of a product customers want to buy which is more than the quantity a firm offers for sale. When surpluses exist, prices fall. When shortages happen, prices rise.
The thing is, when we think of Christmas, we mostly think of the material things we get. We never realize the abundance we have of what’s really important: family, friendship, and love. Christmas is filled with so much love that it’s pretty much like we have a surplus for it. We never feel the shortages in family because we get to spend our time together. Christmas is an abundance of love, where a surplus of it would not be a problem at all.