Overview
Supply and demand are fundamental concepts in economics that explain how prices are determined in a market. Demand refers to how much of a product consumers want to buy, while supply refers to how much producers are willing to sell. The interaction between these two forces creates market equilibrium...
Key Terms
Example: If the price of ice cream decreases, more people will want to buy it.
Example: If the price of smartphones increases, manufacturers will produce more.
Example: At $10, the number of pizzas supplied equals the number demanded.
Example: If too many shoes are produced, there will be a surplus.
Example: If a new game console is released and is sold out, there is a shortage.
Example: A health trend can increase the demand for organic foods.
Related Topics
Key Concepts
Law of DemandLaw of SupplyMarket EquilibriumShifts in Demand and Supply