Why is it important for managers to understand the mechanics of supply and demand both in the short run and the long run

Why is it important for managers to understand the mechanics of supply and demand both in the short run and the long run

Why is it important for managers to understand the mechanics of supply and demand both in the short run and the long run? Give examples of companies whose business was either helped or hurt by changes in supply or demand in the market in which they are competing.

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The law of supply and demand shows how the two relate, how demand for a resource affect the supply of that resource. The relationship between supply and demand determines the price of a commodity the higher the demand of an item the higher the price……………………………….