At equilibrium, there is no competition either to buy or to sell, because everyone can buy or sell however much they may wish, at going price. But whenever market is away from equilibrium, competition will arise and tend to force it back.

Alfred Marshall (1842 - 1924) compared supply and demand sides to two blades of scissors One won't cut by itself. You have to have both!

One of key words in economics is "allocation." To allocate resources is to determine who gets use of what resources. An obvious case of allocation of resources is when market processes of bidding, buying and selling determines who gets use of what resources. That is, in effect, markets can allocate resources.

Accordingly, economics is centrally concerned with workings of markets, and with question, how do markets allocate resources? One answer to that question is expressed in familiar phrase, "Supply and Demand."

The allocation of resources through markets is a complex process. There are several models of resource allocation through markets, but model of "Supply and Demand" is best known and most widely used model!

Copyright © 2005 I.E.C. Haramis haramis@greekshares.com http://www.greekshares.com

Ioannis - Evangelos C. Haramis was born in Greece in 1951. Studied Business Administration, Marketing and Economics in Greece, USA and in Belgium.

Before you borrow from any commercial lender, first make sure that your anticipated loan amount falls comfortably within dollar range that lender is willing to provide. Most lender's have a minimum loan amount of 100k to 300k although you will find occasional institution willing to make loans as low as 25k. While majority of lenders have a loan ceiling reaching $10 million, a few of largest have no limit.

Some commercial lenders also provide opportunities to refinance property that you've previously purchased. While a .5% decrease in interest may not seem like a big deal on a $25,000 loan, it can save you a substantial amount of money on your $50 million loan. A flexible lender may even give you option of borrowing to avoid foreclosure. While this should always be option of last resort, it may buy you enough time to make your business profitable enough to survive a sudden cash flow crisis.

Whether you plan to purchase an apartment complex, industrial facility, or retail outlet, there are few people you'll work more closely with than your commercial lender. When it comes to starting or expanding a business, make sure that your lender is as vitally concerned with your success as you are. After all, they want a return on their investment. It's important to find a commercial lender who is small enough to give you personal attention you will need, but large enough to support your largest commercial real estate acquisitions while giving you options and interest rates that will allow your business to take off.