CHARACTERISTICS OF
TOURISM PRODUCT
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
CHARACTERISTICS
OF TOURISM
PRODUCT
INTANGIBLE
CHARACTERISTICS
OF TOURISM
PRODUCT
Before purchasing a tourism
product, the buyer cannot be
seen or inspected.
Unlike a tangible product, such
as, a car or any intangible
product, there is no transfer of
ownership of goods is involved in
tourism.
CHARACTERISTICS
OF TOURISM
PRODUCT
PSYCHOLOGICAL
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
tourist acquires his or her
experiences while interacting
with the new environment and
this experiences would help
attract and motivate other
potential customer is the tourism
product is able to satisfy the
consumer.
CHARACTERISTICS
OF TOURISM
PRODUCT
HIGHLY PERISHABLE
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
A tourism product cannot be stored
in a shelf by the travel agent or tour
operator who sells it. The production
of the tourism product can only take
place if the customer is actually
present. A tourism product cannot
be stopped, interrupted or modified
once consumption begins. If the
tourism product remains unused, the
chances are it cannot be consumed
anymore.
COMPOSITE PRODUCT
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
Unlike manufactured
products, tourism product
cannot
be
provided
by
a
CHARACTERISTICS
single enterprise alone. Many
OF TOURISM
providers
contribute to cover
thePRODUCT
complete experience of
the tourist visit to a particular
place.
CHARACTERISTICS
OF TOURISM
PRODUCT
UNSTABLE DEMAND
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
factors like seasonal, economy
and politics and others influence
the demand for tourism. In a
year, there are certain times
when there is a greater demand
for tourism than others. At these
times there is a greater need on
services like hotel bookings,
employment, the transport
system, etc.
CHARACTERISTICS
OF TOURISM
PRODUCT
FIXED SUPPLY IN THE SHORT
RUN
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
The tourism product is the destination. It is
not like a manufactured product that cannot
be brought to the consumer; instead the
consumer must physically go to the product
for consumption. Therefore, the supply of
the tourism product is limited in the short run
and may be maximized on a long term
basis depending upon the increasing
demand pattern of the tourist product. It
requires an in-depth study of users’
behavior, taste preferences, likes and
dislikes so that expectations and realities
coincide for the maximum satisfaction of the
consumer.
ABSENCE OF OWNERSHIP
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
the tourism product cannot be
owned. The services of the
tourism
product
can
be
CHARACTERISTICS
bought but the ownership
OF
TOURISM
remain
the provider of the
service.
These
services
can
be
PRODUCT
bought for consumption but
ownership remains with the
provider of the service.
CHARACTERISTICS
OF TOURISM
PRODUCT
HETEROGENEOUS TOURISM
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
tourism product tends to vary in
standard and quality over time,
therefore it is not a homogeneous
product, unlike a T.V set or any
other manufactured product. Due
to this, there is variability in this
product. THE Individuals
performance in giving the same
services may vary every time.
CHARACTERISTICS
OF TOURISM
PRODUCT
RISKY
CHARACTERISTICS
OF TOURISM
PRODUCT
ists to visit that region
Tourism products are first purchased
and later on consumed that is why
there is a high level of risk involved in
purchasing before the consumption
of the products. An element of
chance of risk is always there in the
process. the tourism product has to
purchase first before its consumption,
therefore the risk is heightened.
CHARACTERISTICS
OF TOURISM
PRODUCT
MARKETABLE
CHARACTERISTICS
OF TOURISM
PRODUCT
Tourism product is marketed at two levels.
At the first level, national and regional
organizations engage in encouraging
potential tourists to visit the country or a
certain region by creating awareness and
disseminate information of its country to
potential tourist –generating markets and
persuade visitors to visit the country.
DOT or TBP. At the second level, the
various individual firms providing tourist
services, market their own components of
the total tourist product to persuade
potential tourists to visit that region
TOURISM
PRODUCT
LIFE CYCLE
TOURISM PRODUCT LIFE
CYCLE
Richard Butler developed
a well-known useful
theory is the Tourism Area
life cycle in 1980.
This theory is still used until
today to help tourism
planners and managers
as a guide in their
decision making. The
tourism product lifecycle
consists of six stages.
at the early stage of the
cycle, there are few
people who know a
particular place. It has a
few tourist facilities like
hotels and restaurant, its
natural surroundings are
unspoiled, which makes
tourist get more attracted
to it.
The community is not
focused on tourism and
is focused in living in
traditional ways. In this
stage, the wanderers
are the kind of tourist
who would be most
likely to be found in this
kind of places.
The wanderers are
the path breakers of
tourism because
they have strong
sense of adventure
and seek out the
world’s least visited
places.
once there are small
number of tourist visit
the location regularly,
few locals starts a few
tourist-related
business and a few
hotels and restaurants
are built.
Transportation
facilities like taxi
service is started to
get people to and
from the airport.
The destination is
still unsoiled and
relatively unknown.
when a destination
start to become
known, investors and
tourist related
companies get
involve because they
recognize that they
can make a good
profit.
Locals are being
hired by outsiders to
give services to the
tourist. Big hotels
and restaurants and
other facilities like
bars and
entertainment are
turned into the
center of tourism.
at this point of the
cycle, there are so
many tourist and
so many tourist
related businesses
in the destination
that is has reached
its capacity.
If the expansion
and building of
facilities
continue, the
destination will
suffer.
The strong sense of
local culture and
unspoiled natural areas
and other qualities that
made the destination
known at the first place
is lost as it thrives to
grow.
The repeaters or the
traditional tourist
are most attracted
in this stage. Their
vacations are
predictable and
more laid back.
the destination shows
signs of wear and
tear, hotels become
run-down, local
environment are
polluted and many
species no longer
survive.
Tourists who are
looking for budget
packages will still
visit this
destination in this
phase.
From the stagnation
point onwards there
are 2 basic
possibilities:
DECLINE OR
REJUVENATION
DECLINE
in here the decline
may be slow or rapid.
For some reasons a
destination may this
stage such as natural
disaster that have
caused irreparable
damage,
REJUVENATION
DECLINE
competition from other tourist
destination, poor long term planning and
management or political and economic
factors that are beyond the destinations
control.
During the stagnation stage, if there is no
changes in management or strategic
planning occur, decline in inevitable
DECLINE
This means that the destination
Is no longer profitable and will
either be closed or be turned
into another type of business
DECLINE
in here the decline
may be slow or rapid.
For some reasons a
destination may this
stage such as natural
disaster that have
caused irreparable
damage,
REJUVENATION
or regrowth, in here
any tourist destination
objective is to
continue to attract
tourist and stay
profitable.
REJUVENATION
or regrowth, in here any tourist destination
objective is to continue to attract tourist and
stay profitable.
But doing this requires radical changes to
make the destination thriving again. It is
important to focus on the sustainability of the
destination.
REJUVENATION
Building and hotels should be managed and
new facilities should not be built beyond a
certain point. Roads, sewer facilities and
water and energy supply all needs to be
maintained well. Natural environment must
also be restored and preserved.
WEEK 9
SECTORS WITHIN THE TOURISM
INDUSTRY AND IATA AND ICAO CODES
The TOURISM INDUSTRY, also
known as the
TRAVEL INDUSTRY, is linked to the
idea of people travelling to other
locations, either domestically or
internationally, for leisure, social or
business purposes.
Tourism industry is comprised of all
the companies that provide the
products and services that are
meant and used by tourists at
different stages of travel and
tourism.
1.TRANSPORTATION
SECTOR
1.TRANSPORTATION
SECTOR
is concerned with the movement of people from
one location to another. This sector provides
tourists the means of getting around at their
destination. It plays an important role as it
would be impossible for tourists to visit many
tourist sites without it. It provides an essential
link between points of origin to its destination
areas.
Due to the growth of air
transport in recent years,
long-distance travel has
become much simpler
and affordable. Distance
is now measured in hours
and not in kilometers.
The world has indeed
shrunk and becomes a
small village.
The development of air
transport mostly
occurred after World
War I and II. Commercial
airlines were created for
travelers. Because of
increasing air traffic, the
commercial sector grows
rapidly.
Advantages and
Disadvantages of
Various Modes of AIR
Transport
Direct root, high speed, quick
service, social and political
significance, luxurious travel
are the advantages of air
transportation.
High cost, jet lag, unsuitable
for heavy bulk cargo,
accidents always fatal,
international rule to be
observed are the
disadvantages of air
transportation.
Today, the most popular
and widely used mode of
road travel is the
automobile or the car.
Road transport is
dominated by the
automobile, which
provides views of the
landscape and the
freedom to travel. Tourist
often travels with their
entire family for holidays.
The railway is the most
economical,
convenient, and
popular mode of travel
especially for long
distance travel all over
the world. The railroad
was invented in the
seventeenth century in
Germany with wooden
tracks.
Advantages and
Disadvantages of
Various Modes of
LAND Transport
Flexibility, reliable, door to
door service, economical,
supplements other modes of
transport, quick transit for
short distances are the
advantages of road transport.
Slow speed, carrying capacity
limited, accidents, none- AC
coaches not so comfortable,
comfort depends upon the
conditions of roads are the
disadvantages of road
transport.
this carries passengers
across water. This includes
ferries and ocean liners
that offers transport from
point A to point B. Cruise
ships is also part of this
sector where
transportation is not the
only purpose but the
voyage itself plays a huge
part of the travel
experience.
Advantages and
Disadvantages of
Various Modes of
Water Transport
Economical, carrying
capacity enormously,
develops international
and coastal trades are
the advantages of
water transport.
Water transport
today plays two main
roles in travel and
tourism
namely ferrying and
cruising.
FERRYING convey in a
ferry or other ship or
boat, especially across a
short stretch of water.
and
CRUISING the action of
sailing about in an area
without a precise
destination, especially for
pleasure.
FORMS OF WATER
TRANSPORT
•
•
•
•
•
OCEAN CRUISES
RIVER CRUISES
FERRIES
HOVERCRAFT
PASSEBGER OR
CARGO SHIPS
Spacecraft – this is the most recent
form of transportation that is
becoming increasingly influential in
the years ahead.
Space tourism became commercially
available in 2021 when three large
aerospace companies opened their doors
to the general public. However, there have
been space tourists since 2001, when
Dennis Tito, the first space tourist, paid $20
million for a commercial trip to space with
Russian cosmonauts.
Millionaire Dennis Tito
Upon his return to Earth
from the International
Space Station on May 9,
2001, California millionaire
Dennis Tito speaks at a
press conference about
his experience as the
world's first space tourist.
TITANIC SUBMARINE TOUR
How much is a Titanic submarine tour?
$250,000 per head
The voyage, charging $250,000 per
head, would last 10 hours during which
passengers could get only around 20
minutes to view the Titanic wreckage.
AIRLINE INDUSTRY
or air travel is one of the main means
that tourist and
travellers reach their chosen destination
and provides various services
like scheduled and chartered flights.
Companies may offer international
or domestic flights.
AIRLINE INDUSTRY
Airlines are classified into two broad
categories namely small carrier and large
carrier. The small carrier also known
as commuter airlines have less than 30
seats. The larger carriers,
AIRLINE INDUSTRY
Airlines are classified into two broad categories:
SMALL CARRIER
LARGE CARRIER
also known
as commuter airlines
have less than 30 seats.
also known as major
airlines fly direct routes
between the major
cities and seat and seat
100 to 800 passengers.
TYPES OF AIRLINES:
SCHEDULED
AIRLINES
operate as regular
schedules.
CHARTERED
AIRLINES
or the non-scheduled
airlines operate only
when there is a
demand, mainly during
the tourist seasons.
Lucio Tan
IATA : PR
ICAO: PAL
(1966–2019)
• Chinese-born Filipino entrepreneur who headed
such companies as Fortune Tobacco Corp., Asia
Brewery, Inc., and Philippine Airlines, Inc.
• #7 Lucio Tan richest man in the Philippines
• Networth: $1.7B.
• The new president and chief operating officer
of Philippine Airlines, Gilbert Santa Maria
• The flag carrier of the Philippines was established
in 1941. Philippine Airlines is a trade name of PAL
Holdings, Inc. It is the first and oldest commercial
airline in Asia operating under its original name.
• The Philippine Airlines logo was inspired by the
rising sun.
IATA : PR
ICAO: PAL
• Must be a Filipino Citizen
• At least 19 years old and above (no age
limit)
• Must have a height of at least 5’3” for
female and at least 5’6” for males
• Must have a 20/20 eyesight
• Must have a clear and unblemished
complexion
• Graduate of anu Bachelor’s degree
• Must be fluent in both English and Filipino
SALARY AND BENEFITS
IATA : PR
ICAO: PAL
• In the Philippines the anticipated total
pay for a Flight attendant has an
average salary of 34, 250 per month
• First class accommodation for both
international and domestic airports
• Allowance for transportation
• Free lunches for both in flight and on the
ground.
IATA: 5J
ICAO: CEB
John Gokongwei
• The airline was established on 26
August 1988 and started
operations on March 8, 1996.
• pioneered the "low fare, great
value" strategy.
IATA: 5J
ICAO: CEB
• 18 – 25 years old
• Height: Female: minimum 5’3”;
Male minimum 5’7”
• Weight: proportionate to height
• SHS graduates and College level
are welcome to apply
• Proficient in English and Filipino
• No visible tatoos
• Has a valid Philippines passport
• Willing to be assigned outside
Metro Manila
IATA code: Z2
ICAO code: APG
is a low-cost airline based at Ninoy
Aquino International
Airport in Metro Manila in
the Philippines.[6] The airline is the
Philippine affiliate of AirAsia, a lowcost airline based in Malaysia.
•
•
•
•
•
•
IATA code: Z2
ICAO code: APG
•
•
•
•
Minimum of 18 years old
168 cm (5’5” tall for male and 157 cm for female
Fluent in English both in written and spoken
English
Good communication skills
Well rounded and outgoing personality
Clear complexion - no visible marks in any parts
of the body. It is ok if it can be covered with
make up without making it too obvious.
Graduate of anu discipline.
If you have braces you can negotiate that you
will take it off when training officially starts.
Clear contact lens is recommended compared
to eyeglasses.
Colored hair is also ok as long as it’s only one
color or two shades lighter or darker that your
normal color.
(IATA) International Air Transport Association.
• The It is a non-governmental organization that supports the
global standards for airline safety, security, efficiency and
sustainability.
• This organization formulates policy and standards in the airline
industry.
• Its main priority is to ensure the safety of aircraft and the air
travelers.
• Represents most major scheduled airlines, Generally deals with
commercial aspect of airline operations, i.e. ticketing, interline
baggage transfer, liability limits, etc
(IATA) International Air Transport Association.
•
•
AIRPORT CODES
consisting of three
letters, is linked to
each national and
international airport.
This is also called the
three-letter code.
Ninoy Aquino
International
MNL
AIRPORT (INTERNATIONAL)
IATA CODE
AIRPORT (DOMESTIC)
IATA CODE
Manila Ninoy Aquino Airport
MNL
Bancasi Airport / Butuan Airport
BXU
Mactan-Cebu Airport
CEB
DGT
Iloilo Airport
ILO
Sibulan Airport / Dumaguete
Airport
Davao Airport
DVO
USU
Cark Airport
CRK
Francisco B. Reyes Airport /
Busuanga Aiport
Puerto Princessa Airport
PPS
Legazpi Airport
LGP
Laguindingan Airport
CGY
Tuguegarao Airport
TUG
Bacolod- Silay Airport
BCD
Labo Airport / Ozamis Airport
OZC
Tacloban City Airport
TAC
Sayak Airport / Siargao Airport
IAO
Kalibo Airport
KLO
Roxas Airport
RXS
Zamboanga Airport
ZAM
Cotabato Airport/ Awang Airport
CBO
Bohol – Panglao Airport
TAG
Dipolog Airport
DPL
General Santos Airport
GES
Cauayan Airport
CYZ
Boracay Airport
MPH
Pagadian Airport
PAG
Laoag Airport
LAO
Basco Airport
BSO
Sanga-Sanga Airport
TWT
(IATA) International Air Transport Association.
•
AIRLINE CODES
twocharacter airline d
esignators
PR
5J
Z2
AIRLINE
IATA CODE
AIRLINE
IATA CODE
Singapore airlines
SQ
Lufthansa Airlines
LH
Qatar Airways
QR
Gulf Air
GF
All Nippon Airways
NH
Qantas Airways
QF
Emirates
EK
Asiana Airlines
OZ
China Southern Airlines
CZ
Vistara
UK
Jeju Airlines
7C
Delta Air
DL
Malaysia Airlines
MH
Allegiant Air
G4
Jetstart Asia Airways
3K
China Airlines
CI
Royal Air
RW
Hawaiian Airlines
HA
Jin Air
LJ
Austrian
OS
Pan Pacific Airlines
8Y
Japan Airlines
JL
Cathay Pacific Airways
CX
China Southern Airlines
CZ
Cebgo
DG
Skyjet Airlines
M8
Etihad Airways
EY
Korean Air
KE
(ICAO) International Civil Aviation Organization
This plays a primary role in providing set of
standards that regulate operating practices and
procedure in the technical field of aviation across
the world.
ICAO codes are used for "official" purposes such
as Air Traffic Control for airports and airline flight
identification.
(ICAO) International Civil Aviation
Organization
• Airport code or location indicator is
a two to four-letter code
designating designating every
aircraft type
• It used by pilots and air traffic
controllers in their communication,
when making flight plans and in the
Notams (Notices to Airmen).
PAL
CEB
APG
ICAO CODE
AIRLINE
1. Philippines Airline
PAL
1. Cebu Pacific
CEB
1. Philippines Air Asia
APG
1. Alphaland Aviation
BIC
1. Cebgo
SRQ
1. PAL Express
GAP
1. Royal Air Philippines
RYL
1. SkyJet Philippines
BONUS
1. SkyJet Airlines
MSJ
1. Sky Pasada
WCC
1. Sunlight Air
SEA
1. SEAir International
SGD
1. 2GO
BOI
2. ACCOMMODATION
SECTOR
2. ACCOMMODATION SECTOR
both travel and tourism industries contains
accommodation sector where guest are
requiring overnight accommodation for varied
lengths of time. This sector offers a wide
variety of options to its guest, catering to
different taste, budgets and requirement.
Aside from providing temporary shelter and a
place to sleep, there are several other
services offered by different companies.
ACCOMMODATION SECTOR
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Hotels – this is the most popular
accommodation for tourist. It
provides private rooms that
include bathroom and other
facilities on a short-term basis.
Most hotels also offer other
services like housekeeping, room
service and laundry services.
H
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ACCOMMODATION SECTOR
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Hostels- are a form of sharedroom lodging wherein guest
pay for a bed in a dormitory
style set up. A room has
multiple beds with kitchen and
bathroom facilities for sharing.
H
O
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T
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ACCOMMODATION SECTOR
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Shared Accommodation – Airbnb is
another platform that increased its
popularity of shared accommodation,
which typically consist of a space in a
house that may be shared with the
owners. It consists of a private room
or a room shared with other guest in
one facility.
S A
H C
A C
R O
E M
D O
D
A
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I
O
N
ACCOMMODATION SECTOR
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Campingit is an outdoor accommodation
where tents ate used as
temporary shelter.
C
A
Glampingis a more glamorous spin
on camping and it is bringing a
whole new level of interest to
the camping scene
M
P
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ACCOMMODATION SECTOR
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Campingit is an outdoor accommodation
where tents ate used as
temporary shelter.
C
A
Glampingis a more glamorous spin
on camping and it is bringing a
whole new level of interest to
the camping scene
M
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Bed and Breakfast (BnB) –where
guest are provided with a private
room for the night and breakfast
in the morning. Guest are offered
en suite bathroom facilities or
bathroom for sharing.
B B
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A
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IO
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ACCOMMODATION SECTOR
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Airbnb is a lightly regulated
Bed
and Breakfast
(BnB)
home-sharing
site that
lets–where
almost
guest
arelist
provided
with a private
anyone
accommodations
for
room
rent. for the night and breakfast in
the morning. Guest are offered en
suite
bathroom
facilities
or
bathroom for sharing.
B B
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N F
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D A
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ACCOMMODATION SECTOR
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N
OA
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Cruise- is both classified as
transportation and
accommodation. Guest are
offered their own cabin where
they can relax and spend the
majority of their time in a
cruise ship.
C
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3. FOOD AND BEVERAGE SECTOR
– caters the basic human needs among tourist
which is food and drinks. A wide range of
companies that fall under this sector offers
guest with an array of options of food and
drinks.
3. FOOD AND BEVERAGE SECTOR
Restaurants- are establishments that offer
food and drinks that are primarily
consumed inside the premise. This includes
fast food restaurants, family restaurants,
luxury restaurants and other eateries.
3. FOOD AND BEVERAGE SECTOR
Bars and Cafés – offers travelers food and drinks
where they can enjoy a relaxed environment. Bars
are focused on alcoholic drinks while Cafés focus
on hot drinks and light snacks. Both provide
tourist a place for socialization.
4. ENTERTAINMENT
SECTOR
tourist often needs some entertainment once they
arrive at their destination even although it is not
their primary purpose for the journey. Many
companies offer entertainment as one of the major
attraction that draws people to the location in the
first place.
4. ENTERTAINMENT
SECTOR
CASINO
an entertainment establishment that
provides tourist an opportunity to gamble
through cards, dice and slot games. Some
casinos are connected to hotels and resorts
and sometimes host other entertainment
such as musical or comedy performances.
SHOPPING
caters to the tourist basic
needs it also provide a form
of entertainment. Some
people do travel to a
specific part of the world to
experience the shopping in
that location.
TOURIST GUIDES AND TOURS
offers a guided and organized tour in a
location. This usually consist of a group of
people visiting some important attraction
or tourist sites nearby while the tour guise
gives factual information and make the
tour more interesting and educational
5. CONNECTED INDUSTRIES
there are other sectors in the hospitality and
tourism industry that are linked to it. This
includes companies that promote the interest of
travel industry. These businesses help customers
to connect with the travel and tourism products.
5. CONNECTED INDUSTRIES
TRAVEL AGENTS
in behalf of suppliers, travel agents sell travel
products and generally receive a commission for
doing so. They provide assistance to customers
with advice on what the best travel products are
available based on the customer’s preferences
and budget. They also act as an intermediary
between tourists and suppliers of travel
products.
5. CONNECTED INDUSTRIES
ONLINE TRAVEL AGENCIES
it perform a very similar role to
a traditional travel agency using
the power of the internet while
serving the purpose to connect
tourist with travel products on
behalf of the suppliers.
5. CONNECTED INDUSTRIES
TOUR OPERATORS
combines tour products and travel products
together, in order to sell tour package. A tour
package consist of a combination of air travel,
accommodation, hotel transfers and the
services of holiday reps, who are able to provide
organized activities.
5. CONNECTED INDUSTRIES
TOURISM ORGANIZATIONS
these are organization that acts
in the interest of the tourism
industry itself, examples of
which are tourism information
companies, local tourist boards
and tourism agencies.
5. CONNECTED INDUSTRIES
EDUCATIONAL
these are businesses that deliver a kind of
education service that attracts tourist and
travelers. It is linked into conferences and
training activities and other academic
institutions
WEEK 9
SUPPLY AND DEMAND
THE SUPPLY AND DEMAND
THE SUPPLY AND DEMAND
– this refers to the quantity of a
product or services that is
desired by the consumers.
- In tourism demand, is the total
number of person who wishes
to travel and use tourist
facilities and services at places
away from their work or
residence (Cooper et all. 1993)
THE SUPPLY AND DEMAND
- refers to the amount of the
product and services
offered in the market
- In tourism supply consist of
an amalgamation or mix of
attraction. Tourism supply
shapes the demand for
tourism in a country.
(Cooper et all. 1993)
THE FOUR BASIC LAWS OF SUPPLY
AND DEMAND ARE:
1
• If demand increases 
& supply remains
unchanged,
• then it leads to higher
equilibrium price and
quantity .
2
• If demand decreases 
and supply remains
unchanged ,
• then it leads to lower 
equilibrium price and
quantity.
3
• If supply increases 
and demand remains
unchanged ,
• then it leads to lower 
equilibrium price and
higher  quantity.
4
• If supply decreases  and
demand remains
unchanged , ,
• then it leads to higher 
price and lower  quantity.
EQUILIBRIUM PRICE
– is where
the supply of goods
matches demand. is
the reflection of the
supply and demand.
EQUILIBRIUM
- is the state in which market
supply and demand balance
each other, and as a result,
prices become stable.
Generally, an over-supply of
goods or services causes prices
to go down, which results in
higher demand. The balancing
effect of supply and demand
results in a state of equilibrium