What type of venture can generate new supply and demand curves?

A venture that introduces an unprecedented novel product has the potential to generate new supply and demand curves because it creates an entirely new market category. By offering something that has never been seen before, this type of product can stimulate both consumer interest and purchasing behavior, effectively generating demand where none existed.

At the same time, the introduction of a unique product can influence the supply side by necessitating new methods of production, distribution, or marketing. This novel product can redefine consumer preferences, leading to a shift in existing market dynamics and potentially creating entirely new segments within the market. For instance, consider how the introduction of smartphones not only generated immense consumer demand but also pivoted suppliers and developers to cater specifically to this new technology, reshaping both supply and demand curves in the telecommunications and technology sectors.

In contrast, resold products often operate within existing market frameworks, established services typically fulfill known demand without creating new markets, and localized business models usually adapt to existing consumer patterns rather than generating new curves. The key distinction is that an unprecedented product can redefine market landscapes, while the others are likely to exist within the parameters of existing supply and demand.