Demand and Supply

The Law of Supply and Demand
The Law of Supply and Demand is a fundamental concept in economics that
describes the relationship between the availability of a good or service (supply)
and the desire for that good or service (demand). This law is a key driver of
market prices and plays a central role in determining how markets function. It is a
foundational principle in microeconomics, which focuses on the behavior of
individual consumers and producers within a market.


Here's a more detailed explanation of the Law of Supply and Demand:


Demand:

Demand refers to the quantity of a product or service that consumers are willing
and able to purchase at various prices over a given period.
The demand for a product is influenced by several factors, including its price,
consumer preferences, income levels, the prices of related goods (substitutes and
complements), and external factors like advertising or changes in consumer
tastes.

Supply:

Supply refers to the quantity of a product or service that producers are willing and
able to offer for sale at different prices over a given period.
The supply of a product is influenced by factors such as production costs,
technology, government regulations, and the availability of resources.