Thursday, July 5, 2012

Supply and Demand

A basic principle of economics is supply and demand.  The relative value of a product is based on how much of that product exists and how many people want it.  There is no magical force controlling prices or values, unless you are a diehard conspiracy theorist in which I completely respect your opinion.  Rather, the idea of supply and demand is a model which describes the natural laws of the world.

According to this principle, if the supply decreases but demand remains constant, the value goes up.  There are a lot of odd investments people make, but I have thought of a very good one, especially since it is very warm today all across the United States - Girl Scout Cookies.

As most people know, Girl Scout Cookies are only available in a certain time frame, generally in March/April.  Because of their natural deliciousness, they often disappear as soon as they arrive, and we have to wait until the next year until they are made available once again.  If, however, someone were to freeze and save a large amount of Girl Scout Cookies until the summer or later, they would easily be able to fetch a 150-300% increase on their investment.

Observe the scientifically proven and statistically accurate graph below:




As we can see, the supply of Girl Scout Cookies spikes, then immediately falls off, while the demand stays constant.  Therefore, according to basic economic principles, there is a lot of money to be made.

The only downsides would be the constant temptation to eat them all before selling them, and the fact that it would feel awkward selling Girl Scout Cookies since I am not a 7-year-old girl.

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