One of the fundamental concepts of economics is supply and demand. With this concept, you can maximize the profits of your company by creating equilibriums.

Production and inventory are your supply. Demand is the sum of your sales and missed sales.

You control production unless you have enabled AutoProduction. Sometimes random events may cause a decrease in production. But for the most part, you control vehicle supply.

Two factors can change demand: pricing and availability. Increasing the price of a model will reduce demand, whereas decreasing the price will increase demand. Opening new dealerships and branches in new markets will increase availability, thus increasing demand. Closing branches has the opposite effect.

Ideally, you want production to match demand. This is equilibrium.

Let's look at some in game situations that you might find yourself in. And how you should approach supply and demand to maximize your profits.